Page 6 - NorthAmOil Week 34

NorthAmOil COMMENTARY NorthAmOil
Venture Global announces Calcasieu Pass FID
Venture Global’s nal investment decision on its Calcasieu Pass terminal shows that the second wave of US LNG terminal construction is gaining momentum, writes Anna Kachkova
INVESTMENT
WHAT:
The second wave of US LNG export capacity construction is under way.
WHY:
Venture Global’s FID is the second announced this year on a new US LNG export project.
WHAT NEXT:
Other proposed plants still have challenges ahead that could make it harder to reach FID.
VENTURE Global LNG has announced a nal investment decision (FID) on the Calcasieu Pass terminal in Louisiana’s Cameron Parish. In an August 19 statement, the company said it had also closed project nancing for the facility and associated TransCameron pipeline. It added that full site construction had already been underway since February. Venture Global has already spent more than $250mn on site preparation work, nal engineering and equipment purchases and fabrication.
e 10mn tonne per year (tpy) export plant is due to enter service in 2022.
e proceeds of the debt and equity nanc- ing fully fund the balance of the construction and commissioning of Calcasieu Pass, Venture Global in its statement this week. e company has raised $5.8bn of construction nancing from lenders that include a number of global project nance banks. Stonepeak Infrastructure Part- ners agreed in May to invest $1.3bn in Calcasieu Pass LNG.
Mid-scale mover
Venture Global has turned to modular mid- scale liquefaction technology for Calcasieu Pass LNG. e terminal will comprise nine 1.2mn tpy blocks, with each block containing two elec- trically driven 0.626mn tpy trains. Feedstock natural gas will ow through acid gas removal and dehydration systems before it enters the lique ers. Produced LNG will be stored in two 200,000 cubic metre full containment storage tanks, and Venture Global says this capacity will allow it to optimise the plant’s output during colder periods.
The plant’s marine terminal will have two loading docks, and will be able to accommodate LNG carriers with a capacity of up to 185,000 cubic metres.
The liquefaction technology is being pro- vided by Baker Hughes, a GE company (BHGE), which revealed on August 20 that it had been granted notice to proceed with construction.
“By providing innovative LNG technology
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w w w . N E W S B A S E . c o m Week 34 27•August•2019