Venture Global LNG has closed its Calcasieu Pass LNG facility and associated TransCameron pipeline project financing.
The proceeds of the debt and equity financing fully fund the balance of the construction and commissioning of Calcasieu Pass. Full site construction has been underway since February, 2019, and the project is expected to reach its commercial operations date (COD) in 2022, the company said.
Stonepeak Infrastructure Partners has provided a $1.3 bill equity investment for the project. The lender group for the company's $5.8 bill construction financing includes leading Asian, European and North American project finance banks.
The lenders who provided funding at closing are Banco Santander, Bank of America, Goldman Sachs Bank USA, Industrial & Commercial Bank of China, ING Capital, JPMorgan Chase Bank, Mizuho Bank, Morgan Stanley Senior Funding, Natixis, Nomura Securities International, Royal Bank of Canada, Sumitomo Mitsui Banking Corp, and The Bank of Nova Scotia.
Venture Global LNG Co-CEOs Mike Sabel and Bob Pender jointly stated, "Our goal has always been to lower the cost of electricity by delivering clean, low-cost LNG to the world. The closing of our financing is the culmination of years of hard work, and we want to sincerely thank our Venture Global team, our construction partners, our foundation customers, our lenders and advisors, Cameron Parish and our local partners in Louisiana."
Calcasieu Pass has received all the necessary permits, including FERC authorisation and non-FTA export authorisation from the US Department of Energy. The project has 20-year LNG sale and purchase agreements with Shell, BP, Edison, Galp, Repsol and PGNiG.
Venture Global LNG is also developing the 20 mill tonnes per annum Plaquemines LNG project and the 20 mill tonnes per annum Delta LNG project, both located in Plaquemines Parish, Louisiana.
Morgan Stanley served as financial advisor to Venture Global for the transaction, while Latham & Watkins served as counsel to Venture Global and Skadden, Arps, Slate, Meagher & Flom served as counsel to the lenders.