May 25 (Reuters) - U.S. liquefied natural gas (LNG) company
Venture Global LNG said on Wednesday it made a final investment
decision (FID) to build the proposed Plaquemines LNG export
plant in Louisiana.
Venture Global said in a release it closed on the $13.2
billion project financing for the initial 13.33 million tonnes
per annum (MTPA) phase of the project and associated Gator
The decision comes as LNG prices around the world have
soared to meet growing demand in Asia and European countries
seeks to break their dependence on Russian gas after Moscow's
Feb. 24 invasion of Ukraine.
Plaquemines is the first U.S. LNG project to reach financial
close since Venture Global's Calcasieu Pass in August 2019.
Calcasieu delivered its first LNG earlier this year.
Venture Global said it has 20-year agreements to sell LNG
covering about 80% of the full 20-MTPA Plaquemines project.
Customers signed up to take LNG from the first 13.33-MTPA
phase at Plaquemines include units of China National Offshore
Oil Corp (CNOOC), China Petroleum and Chemical Corp (Sinopec)
, Shell PLC, Polish Oil and Gas Co (PGNiG)
and Electricite de France.
Customers for Plaquemines second phase include units of
Exxon Mobil Corp, PETRONAS and New Fortress Energy Inc
Venture Global said it was actively marketing its proposed
CP2 plant, which would be its third export facility in
Louisiana, and already has contracts to sell CP2 LNG to
ExxonMobil and New Fortress.
Venture Global started early site work on Plaquemines, which
is located about 20 miles (32 kilometers) south of New Orleans,
Plaquemines includes modular liquefaction trains similar to
systems at Calcasieu.
In total, Venture Global has about 70 MTPA of LNG export
capacity in operation, construction or development in Louisiana,
including the 10-MTPA Calcasieu (operation and construction),
20-MTPA Plaquemines (construction), 20-MTPA Delta (development)
and 20-MTPA CP2 (development).
(Reporting by Scott DiSavino
Editing by Nick Zieminski)