Page 10 - GLNG Week 06 2021
P. 10

GLNG                                            AMERICAS                                               GLNG


       Venture Global




       pushes forward



       with plans for



       new terminals





        PROJECTS &       VENTURE Global LNG, which is currently
        COMPANIES        building the Calcasieu Pass LNG export ter-
                         minal on Louisiana’s Gulf Coast, is progressing
                         plans to build other terminals in the region.
                           This week, the company announced that it
                         had closed a $500mn term loan with JPMorgan
                         Chase Bank, Morgan Stanley Senior Funding,
                         Mizuho Bank and Bank of America. The pro-
                         ceeds will be used to fund pre-final investment
                         decision (FID) construction activities at the
                         company’s proposed Plaquemines LNG export
                         project in Louisiana, as well as for general cor-
                         porate purposes, Venture Global said.
                           Comments from Venture Global’s CEO, Mike  Delta LNG, which would similarly consist of two
                         Sabel, suggest that an FID is not far off.  10mn tpy phases.
                           “We are proud to continue to partner with   In addition, it emerged in late January that
                         this group of leading banks, all of whom are  Venture Global was seeking to enter the filing
                         lenders to our Calcasieu Pass LNG export facil-  process at the US Federal Energy Regulatory
                         ity, as we move towards the launch of full con-  Commission (FERC) for a fourth LNG export
                         struction on Plaquemines LNG in 2021,” Sabel  project, known as CP2 LNG. This facility would
                         stated. “Replicating the successful strategy we  be adjacent to Calcasieu Pass, and the proposal
                         pioneered and utilising the same configuration,  also involves building the CP Express pipeline.
                         we will continue to execute on our commitment   Given that Venture Global has only sold
                         to provide the lowest cost LNG to the global  offtake covering around 17.5% of the capacity
                         market and supply the world’s growing demand  of Plaquemines and has not yet announced any
                         for clean and reliable energy.”      supply deals for Delta, its ability to sell sufficient
                           There are currently 14 North American pro-  offtake to support a fourth project is uncertain.
        Comments from    jects that are targeting an FID in 2021, accord-  However, the company may be betting that the
                         ing to Reuters, with most of these delayed from  recent spike in LNG spot prices will cause buy-
       Venture Global’s   2020. According to the news service, Plaquem-  ers to rethink their strategies and lock in more
       CEO, Mike Sabel,   ines is one of the few in the US that is actually  supplies.
                         expected to go ahead.
                                                                According to Venture Global’s pre-filing
                                                              application with the FERC, if all necessary
                           The engineering, procurement and con-
        suggest that an   struction (EPC) contract for Plaquemines  authorisations are granted on time, construction
       FID is not far off.  was awarded in November 2020 to KBR. The  on CP2 LNG would begin in the second quarter
                         10mn tonne per year (tpy) plant would consist  of 2023. The first deliveries of LNG would then
                         of “highly modularised” equipment identical  be targeted for the second quarter of 2025 and
                         to the systems currently being installed at Cal-  full commercial operations for the first phase by
                         casieu Pass LNG. Venture Global has already  mid-2026.
                         signed binding 20-year offtake agreements with   There has been speculation that CP2 LNG is
                         Poland’s PGNiG and France’s EDF for a com-  being considered as an alternative to Delta LNG.
                         bined 3.5mn tpy of Plaquemines’ capacity and  Venture Global has not commented on this, and
                         has all regulatory approvals in hand.  the pre-filing docket is still live at the FERC, but
                           Venture Global’s design involves mid-scale  there has not been much activity on it recently.
                         liquefaction technology, with each 10mn tpy  A December update said that Delta LNG contin-
                         of capacity requiring 18 electrically driven  ues to prepare its federal and state environmental
                         0.626mn tpy liquefaction trains arranged across  permit applications, but little else has been said
                         nine blocks, with two per block. The company  about that project.
                         is later proposing to build a second 10mn tpy   Calcasieu Pass LNG, meanwhile, is due to
                         phase at Plaquemines, and is also hoping to build  enter service in the autumn of 2022.™



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