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.
P10 www. NEWSBASE .com Week 06 12•February•2021