Venture Global completes second storage tank roof-raising ahead of schedule at Plaquemines LNG project
Venture Global LNG, the operator of the Calcasieu Pass export plant in Louisiana and developer of three other plants in the US Gulf Coast state, said it had successfully raised the roof of the second LNG storage tank at the Plaquemines LNG export project in Louisiana.
Venture Global, based in Arlington, Virginia, said the roof-raising was completed ahead of schedule and came just seven weeks after the roof-raising for tank one.
“This represents another major milestone in the construction of Plaquemines LNG, with both roofs now raised for the tanks serving Phase One,” said Michael Sabel, Chief Executive of Venture Global.
“With Phase One deep into construction and our recent final investment decision and full notice to proceed on Phase Two, Plaquemines is well positioned to be the next new major LNG capacity to reach the global market,” Sabel explained.
Four tanks
This is the second tank of four in total being constructed for Plaquemines, located on the banks of the Mississippi and south of New Orleans.
When operational each tank will be capable of storing 200,000 cubic metres of LNG.
“The roof weighs 900 tons and is 294 feet in diameter. Air raising allows for better and safer access as well as a faster construction schedule, as the roof can be erected concurrently with the shell. The tank dome was raised in 71 minutes using 0.3 psi of pressure underneath the roof,” the company said.
“It was raised from ground level to top of the wall height of 130 feet. Eventually, the tank will have an inner tank made from 9% nickel alloy and an outer wall and outer roof made from concrete to provide full containment of the LNG and provide the maximum level of resilience and safety,” added Venture Global.
The company’s existing export plant, the Calcasieu Pass facility in Cameron Parish in Louisiana, is located south of the city of Lake Charles and shipped its first cargo at the start of March 2022.
The Calcasieu Pass facility comprises 18 small-scale modular liquefaction Trains each with 0.626 million tonnes per annum of capacity and configured in 9 blocks for total nameplate output of 11.26 MTPA.
However, Venture Global has plans for more future output of about 60 MTPA of LNG export capacity.
The company’s three other projects, including the CP2 (Calcasieu Pass 2) venture, are each expected to have nameplate capacity of around 20 MTPA.
As well as the Plaquemines plant there is the Delta LNG project to be constructed on a 540-acre site also in Plaquemines Parish on the banks of the Mississippi.
Venture Global of US raises $500M for Plaquemines LNG work ahead of final investment decision
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.
US Plaquemines LNG plant on Mississippi River to proceed with prospects of high output
The Plaquemines LNG export plant in Louisiana proposed for river mile-marker 55 on the west side of the Mississippi River, 30 miles south of New Orleans, has been authorized to proceed by the Federal Energy Regulatory Commission.
