Venture Global has confirmed a final investment decision (FID) and secured financing for the initial phase of the Venture Global CP2 LNG (CP2), alongside the associated CP Express Pipeline, in the US.
The financial arrangement for this LNG project in Louisiana has reached $15.1bn.
This milestone for CP2 follows Venture Global’s previous financing for Plaquemines LNG, which amassed commitments exceeding $34bn from major global banks, with no need for external equity investment.
CP2 marks the company’s third liquefied natural gas (LNG) project.
Venture Global CEO Mike Sabel said: “We are extremely proud to have taken FID on our third greenfield project in under six years with over $80bn in capital markets transactions executed to date.
“This success would not be possible without the dedication and relentless execution of the entire Venture Global team. Our significant early investments and work on the project make CP2 the most advanced project at FID to date.
“This project, fully owned by Venture Global and our shareholders, is expected to deliver reliable American LNG to the world beginning in 2027.”
The CP2 LNG project will be capable of producing up to 28 million tonnes per annum (MTPA) at its peak. Phase 1 of the project has secured long-term sales and purchase agreements with clients across Europe, Asia, and other regions.
Overall, Venture Global’s projects in Louisiana now have a contracted capacity of 43.5MTPA.
The banks involved in the financing of CP2 include Bank of America, Barclays, Bayern LB, BBVA, CIBC, Deutsche Bank, among others.
ING and Santander acted as lead arrangers for the construction term loan and working capital facility, while Bank of America and Scotiabank led the equity bridge loan arrangements.
The CP2 LNG terminal is set to be established on a 1,150-acre site in Cameron Parish. The pipeline component will commence in Texas’ Jasper and Newton Counties, supplying natural gas to the proposed terminal.
Located adjacent to Venture Global’s Calcasieu Pass LNG facility, this site will also accommodate a marine facility on Monkey Island near the Calcasieu Ship Channel.
This month also saw Venture Global and Italy’s Eni finalising a new sales agreement for 2MTPA of LNG from CP2 LNG. The deal marked Eni’s inaugural long-term deal with a US LNG producer.
