Venture Global Closes $8.6B Financing to Build CP2 LNG 2nd Phase
Liquified natural gas (LNG) project developer Venture Global has closed on $8.6 billion in financing and is committing to building Phase 2 of its CP2 export terminal along the U.S. Gulf Coast.
The LNG producer approved the final investment decision (FID) after gaining more than $19 billion in customer commitments for production from CP2 in coming years, once construction is completed and operational in a few years. CP2 is expected to achieve peak production of 29 metric tons of LNG per year (MTPA).
Work on CP2 proceeds in tandem with the associated CP Express Pipeline. Natural gas is moved from shale plays to the Gulf when it’s liquified by chilling it to minus 260 degrees Fahrenheit and made stable for shipping.
“We are extremely proud to have taken FID on the second phase of CP2, our third greenfield project, bringing Venture Global’s executed capital markets transactions to more than $95 billion,” said Venture Global CEO Mike Sabel in a statemnt. “The tireless dedication of our team has enabled us to reach five final investment decisions in less than seven years, positioning us to become the largest U.S. exporter of LNG once CP2 is fully online.”
Venture Global has contracted to sell nearly all of its CP2 nameplate capacity on a long-term basis with customers located in Europe and Asia.
Banco Bilbao Vizcaya Argentaria (BBVA) and MUFG Bank (MUFG) served as Lead Arrangers for CP2 LNG Phase 2’s Construction Term Loan and Working Capital Facility. Latham & Watkins served as counsel to Venture Global and Skadden, Arps, Slate, Meagher & Flom served as counsel to lenders across all facilities.
Phase 1 of CP2 LNG already has long-term purchase agreements with customers in Europe, Asia and the rest of the world. Venture Global now has a total contracted capacity of 43.5 MTPA across all three of its projects in Louisiana.
The company’s other LNG facilities include Plaquemines and Calcasieu Pass, which are also built along the Louisiana Gulf coast.
Ten years ago, U.S. companies moved the first LNG cargo from the Sabine Pass Terminal to global customers. Now, the U.S. is the world’s largest LNG exporter moving more than 15 billion cubic feet per day.
Venture Global has a total contracted capacity of over 49 MTPA, or nearly all its nameplate capacity, across all three of its projects in Louisiana.