Venture Global of US raises $500M for Plaquemines LNG work ahead of final investment decision

Friday, 12 February 2021
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US LNG project developer Venture Global has raised $500 million of funding in transactions arranged by American and Japanese banks to finance construction activities at the Plaquemines LNG export project in Louisiana ahead of a final investment decision.

The Arlington, Virginia-based company already has an export plant under construction at Calcasieu Pass in Cameron Parish and has received authorization to build the Plaquemines export facility at river mile-marker 55 on the west side of the Mississippi, about 30 miles south of New Orleans.

The company said it had closed the term-loan involving JPMorgan Chase Bank, Morgan Stanley Senior Funding, Bank of America and Japan’s third-largest banking group, Mizuho Bank.

“The transaction was upsized from $400M to $500M based on strong lender interest,” said Venture Global.

“The proceeds will be used to fund pre-FID construction activities at the company's Plaquemines LNG export project as well as for general corporate purposes,” it added.

The transaction was upsized from $400 million to $500 million based on strong lender interest.

Plaquemines will be constructed in two phases, each phase designed with liquefaction and export capacity of 10 MTPA, and possibly more under optimal operating conditions.

Venture Global in December 2020 stated that US engineering firm KBR could have the engineering, procurement and construction contract for the first phase of the Plaquemines project.

The most advanced development by Venture Global is the Calcasieu Pass export plant in Louisiana, which is expected to come on stream in 2022 along with its associated TransCameron Pipeline.

The company is also studying other LNG export opportunities in the state of Louisiana.

Venture Global Chief Executive Michael Sabel said he was pleased to be able to to continue to partner with a group of leading banks, all of whom are lenders to the Calcasieu Pass export project.

“Replicating the successful strategy we pioneered and utilizing the same configuration, we will continue to execute on our commitment to provide the lowest cost LNG to the global market and supply the world's growing demand for clean and reliable energy,” added Sabel.

Venture Global's Plaquemines project has contracted 3.5 MTPA of the facility's 10 MTPA first phase under binding 20-year offtake agreements and received both Department of Energy export authorization and final approval from the Federal Energy Regulatory Commission.

JPMorgan and Morgan Stanley served as joint lead arrangers on the transaction while Bank of America and Mizuho participated as lenders.

Davis Polk & Wardwell LLP and Simpson Thatcher & Bartlett LLP served as legal counsel to the borrower and lenders respectively.

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