NEW ORLEANS — On March 13, Venture Global LNG announced the successful closing of $7.8 billion in project financing for the second phase of its massive liquified natural gas (LNG) facility in Plaquemines Parish.
The company says the total $21 billion investment (phases one and two combined) is the “largest project financing ever done.”
“Venture Global is proud to announce a positive final investment decision for phase two of Plaquemines LNG, less than 10 months after sanctioning phase one,” said Mike Sabel, the Virginia-based company’s CEO. “Our company’s continued ability to commercialize, obtain financing and build our projects in an extremely competitive market is a testament to our team’s proven track record of discipline and execution.”
Michael Hecht, of Greater New Orleans Inc., said the phase two financing is “great news for the region and a chance to further our country’s role in weaning the world off Russian gas.”
“The massive size of this investment is only possible due to the global demand for clean, affordable natural gas, and the confidence that the largest customers and investors in the world have in the Venture Global team,” Hecht told Biz New Orleans. “The result of this investment will be thousands of good jobs in Plaquemines and in greater New Orleans, millions in new tax revenue for our state, and geopolitical stability for Europe and the free world.”
Venture Global said Plaquemines LNG has received all necessary permits, including FERC authorization and non-FTA export authorization from the U.S. Department of Energy. Its list of phase two customers includes ExxonMobil, Chevron, EnBW, New Fortress Energy, PETRONAS, China Gas and Excelerate Energy.
The company said it is developing carbon capture and sequestration projects at each of its LNG facilities, but several environmental groups are skeptical and have tried to slow progress at Plaquemines LNG. The Sierra Club, Healthy Gulf and the Deep South Center for Environmental Justice all oppose the project over concerns about greenhouse gas emissions and because of a potential negative impact on coastal waters.
According to the Federal Register, Venture Global has asked the federal government to increase its peak capacity from 24 to 27 metric tons of LNG per year.
“Our team will continue to deliver on our mission to bring more clean, low-cost U.S. LNG to the global market in the coming years to support the world’s rapidly growing demand for energy,” said Sabel.
Lenders who provided funding at closing are BBVA, Banco Santander, Bank of America, Bank of China, Caixa Bank, Deutsche Bank, Goldman Sachs, ICBC Standard, ING, J.P. Morgan Chase, LBBW, Mizuho, MUFG, Natixis, Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia, Wells Fargo Bank, National Bank of Canada, KfW Ipex-Bank, Helaba, DZ Bank and Regions Bank.
ING, Santander, Mizuho, Scotia, and MUFG served as Lead Banks to Venture Global for the transaction. Latham & Watkins LLP served as counsel to Venture Global and Skadden, Arps, Slate, Meagher & Flom LLP served as counsel to the lenders.
Venture Global specializes in sourcing LNG from North American natural gas basins. Its first facility, Calcasieu Pass, began producing LNG in January 2022.
