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Venture Global said on Friday that its subsidiary, Venture Global CP2 LNG, had secured commitments from 19 banks for the facility to continue manufacturing, procurement, and engineering of its plant, begun in early 2023, to be located alongside the Calcasieu Ship Channel in Cameron Parish, Louisiana.
The company previously announced it had launched the formal FID process for CP2 in March.
It also received conditional non-FTA approval from the US Department of Energy for the project.
The CP2 LNG plant will be located next to Venture Global’s existing 10 mtpa Calcasieu Pass liquefaction plant in Louisiana, which recently started commercial operations.
CP2 is expected to have peak production capacity of up to 28 mtpa.
To date, the initial phase of CP2 LNG has been sold through 20-year SPAs with ExxonMobil, Chevron, Jera, NFE, Inpex, China Gas, SEFE, and EnBW.
Venture Global estimates that the total project costs for the CP2 project, including both phases, will range from about $27 billion to $28 billion.
According to Venture Global, CP2 intends to use the net proceeds of the bank Loan to pay project costs and fund reserves for debt service, fees, and other expenses associated with the facility.
The borrowings are guaranteed by Venture Global CP Express and CP2 Procurement, each an affiliate of CP2.
Venture Global said the facility is secured by a first-priority perfected security interest in substantially all assets of and the membership interests in CP2 and each of the guarantors.
Including a recent $2.5 billion Plaquemines LNG bond transaction, this facility brings Venture Global’s total capital markets transactions to $5.5 billion in the last two weeks.
Venture Global CEO Mike Sabel said the company is “proud to close this major financing for CP2, which is slated to receive its first two liquefaction trains —number 55 and 56 deployed by Venture Global — in the coming months.”
“This new capital, on top of the more than $4 billion we have already invested to date, will enable continued fabrication, manufacturing, and procurement at an accelerated pace, similar to Plaquemines,” he said.
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The post Venture Global secures $3 billion bank loan for CP2 LNG appeared first on Energy News Beat.
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