Venture Global Secures $8.6B for CP2 LNG Phase 2, Finalizes $20.7B Total Project Financing

According to World Oil, Venture Global has made a final investment decision for the second phase of its CP2 liquefied natural gas project in Louisiana. The company secured financing of $8.6 billion for this phase, which brings the total financing for the overall development to $20.7 billion.

The financing for Phase 2 is described as the largest standalone project financing within the U.S. bank market. International lenders committed more than $19 billion for this phase, adding to the $34 billion in commitments previously obtained for the project’s first phase.

When finished, the CP2 facility is projected to reach a peak production capacity of around 29 million tonnes per annum. The company reports that nearly all of this capacity is already under long-term contract with customers, most of which are based in Europe and Asia. This project represents the company’s third greenfield LNG development and contributes to its expansion of export capacity along the Gulf Coast. The CEO stated that this marks the company’s fifth final investment decision in under seven years. Once CP2 is fully operational, the company expects to become the largest exporter of LNG from the United States.

Across its three projects in Louisiana, the company now has over 49 million tonnes per annum of capacity under contract, covering nearly all of its total nameplate export capacity. A consortium of global banks participated in the Phase 2 construction financing, with Banco Bilbao Vizcaya Argentaria and MUFG Bank acting as lead arrangers for the construction term loan and working capital facility.

Please mention the Source: https://www.indexbox.io/blog/venture-global-secures-86b-for-cp2-lng-phase-2-finalizes-207b-total-project-financing/