Chart Industries gets full notice to proceed for equipment contract for Plaquemines LNG in Louisiana
Chart Industries, the US maker of equipment for LNG and industrial gases facilities, has received a full notice to proceed (FNTP) for the production of cold boxes and brazed aluminum heat exchangers for Venture Global’s Plaquemines LNG export plant on west bank of the Mississippi River.
The Chart equipment will be for the first phase of the venture with production of 10 million tonnes per annum.
“In conjunction with the FNTP, Chart booked the full equipment order of $136 million for the Plaquemines project from Baker Hughes,” said Chart.
“Chart will begin recognizing revenue on this project in 2022 with a multi-year staggered delivery schedule,” explained Atlanta, Georgia-based Chart.
Chart is benefiting from the LNG boom on the US Gulf Coast and after supplying equipment for the Plaquemines plant, it has also been contracted as a supplier for Cheniere Energy’s Corpus Christi plant expansion and for Tellurian’s Driftwood LNG project.
The Plaquemines project is under preliminary site preparation on the river bank 30 miles south of New Orleans.
First phase production will comprise nine modular blocks with the 10 MTPA of output eventually followed by nine additional block for 20 MTPA in total.
Funding
Venture Global had already raised $500 million of funding in transactions arranged by American and Japanese banks to finance construction activities at Plaquemines.
The Arlington, Virginia-based company previously closed a term-loan involving JPMorgan Chase Bank, Morgan Stanley Senior Funding, Bank of America and Japan’s third-largest banking group, Mizuho Bank.
Venture Global is currently developing 70 MTPA in four projects in Louisiana.
The most advanced plant in terms of construction is Calcasieu Pass in Cameron Parish in Louisiana, south of Lake Charles, with 10 MTPA of capacity and which was shipped its first cargo on March 1.
The other three projects are expected to each produce around 20 MTPA of LNG.
In addition to the Plaquemines and Calcasieu Pass developments, Venture Global is planning two other plants, Delta LNG on the Mississippi and CP2 LNG, which would be built on a 540-acre site in Cameron Parish, adjacent to the Calcasieu Pass facility.
