New $1.3 Billion Equity Investment in Calcasieu Pass LNG Facility

Credit: Calcasieu Pass LNG
Credit: Calcasieu Pass LNG

By The Maritime Executive 05-28-2019 06:11:25

Venture Global LNG and Stonepeak Infrastructure Partners have executed definitive agreements under which Stonepeak will exclusively provide a $1.3 billion equity investment in Venture Global's 10 million tonnes per annum (MTPA) Calcasieu Pass LNG export facility in Cameron Parish, Louisiana.  As part of the deal, Stonepeak Managing Director James Wyper will join the board of Calcasieu Pass.

The agreement brings total committed capital to fund the construction of Calcasieu Pass and the continued development of Venture Global's 20 MTPA Plaquemines LNG and 20 MTPA Delta LNG facilities to $2.2 billion.

Calcasieu Pass is already significantly advanced in both site construction and module manufacturing, owing to the $855 million previously raised to date. Venture Global LNG is finalizing the balance of its financing with a consortium of project finance lenders and already has global customers – Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG. Production is expected to begin in 2022.

The 10 MTPA nameplate Venture Global Calcasieu Pass facility will employ a comprehensive process solution from Baker Hughes that utilizes highly efficient mid-scale, modular, factory-fabricated liquefaction trains. Kiewit is designing, engineering, constructing, commissioning, testing and guaranteeing the Calcasieu Pass facility. The facility has received all necessary permits, including FERC authorization and Non-FTA export authorization from the U.S. Department of Energy, and construction activities are ongoing with over $250 million spent on site preparation work, final engineering and equipment purchases and fabrication. 

The project site is secured under exclusive agreements for up to a 70-year term.

Venture Global expects to secure FERC and DOE authorizations for Plaquemines LNG in the third quarter of this year and commence construction shortly thereafter.