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Venture Global is Completion of $5.8 billion LNG project financing
Published:2019-08-28 Source:JINOCCO tags:

      A Virginia company's goal to become an LNG powerhouse on the Gulf Coast is coming closer to reality. Venture Global has closed project financing for its $5.8 billion liquefied natural gas plant in Cameron Parish, Louisiana. It's one of three LNG projects Venture Global has in the works on the Gulf Coast in competitive field filled with companies racing to bring American natural gas" to the world.

      Venture Global said Tuesday it has approved a final investment decision for it Calcasieu Pass LNG project and associated TransCameron pipeline in Cameron Parish, Louisiana. The final investment decision comes after the company closed project financing Monday.

      The proceeds of the debt and equity financing fully fund the balance of the construction and commissioning of Calcasieu Pass, Venture Global said in a Aug. 19 release.

      Construction on 10-million-metric-ton-per-year Calcasieu Pass project stared in February 2019. The company now invested more than $250 million spent on site preparation work, final engineering and equipment purchases and fabrication.

      The project is expected to reach full commercial operations by 2022. 

      The Calcasieu Pass project received the green light from the Federal Regulatory Energy Commission earlier this year. In March the U.S. Energy Department approved Venture Global to export liquefied natural gas to non-free-trade agreement countries, an important step needed to sell its products to Asian countries where demand for LNG is expected to swell.

      Venture Global has hired Baker Hughes, a GE company (BHGE) to provide a process solution that utilizes mid-scale, modular, factory-fabricated liquefaction trains. Under the contract, BHGE will provide an LNG liquefaction train system  with 18 modularized compression trains across nine "blocks," for a total nameplate capacity of 10 million tonnes per a year, according to an Aug. 20 release from Baker Hughes.  The modularized system offers a so-called  "plug and play" approach that Baker Hughes says speeds up installation times and reduces construction and operational costs. These modules will be manufactured, assembled, tested and transported from BHGE's state-of-the-art plants in Italy. 

      Kiewit is designing, engineering, constructing, commissioning, testing and guaranteeing the Calcasieu Pass facility. 

      RELATED: U.S. ‘Freedom Gas aims to loosen Russia's grip on Europes market .

      The terminal has 20-year supply agreements with several customers, including the international energy companies Royal Dutch Shell and BP. 

      Venture Global also is developing the 20 MTPA Plaquemines LNG project and the 20 MTPA Delta LNG project, both in Plaquemines Parish, Louisiana. In late June, Venture Global said it had secured another $675 million in funding for the Plaquemines LNG export project too. 

      Morgan Stanley served as financial advisor 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. 

      Stonepeak Infrastructure Partners provided a $1.3 billion equity investment for the project. The lenders who provided funding at closing are Banco Santander, S.A, Bank of America, N.A., Goldman Sachs Bank USA, Industrial & Commercial Bank of China Limited, ING Capital LLC, JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., Morgan Stanley Senior Funding, Inc., Natixis, Nomura Securities International, Inc., Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, and The Bank of Nova .

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