Venture Global has announced a final investment decision (FID) and the successful closure of $15.1bn in project financing for the first phase of its CP2 LNG (CP2) project in Louisiana, US, along with the associated CP Express Pipeline.
The company claims that this financing milestone represents the largest stand-alone project financing to date and the second-largest project financing overall, following the combined financings of its Plaquemines LNG project.
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CP2 LNG is Venture Global’s third project and is expected to position the company as the largest exporter of liquefied natural gas (LNG) from the US, according to the company.
The project is set to have a peak production capacity of 28 million tonnes per annum (mtpa).
Phase one of the project has secured long-term sales and purchase agreements (SPAs) with customers in Europe, Asia and other regions, underscoring CP2’s strategic importance to global energy supply and security.
Venture Global now boasts a total contracted capacity of 43.5mtpa across all three of its projects in Louisiana.
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By GlobalDataVenture Global CEO Mike Sabel said: “We are extremely proud to have taken FID on our third greenfield project in under six years with over $80bn in capital markets transactions executed to date.
“This success would not be possible without the dedication and relentless execution of the entire Venture Global team. Our significant early investments and work on the project make CP2 the most advanced project at FID to date. This project, fully owned by Venture Global and our shareholders, is expected to deliver reliable American LNG to the world, beginning in 2027.”
The transaction attracted significant interest from the world’s leading banks, resulting in commitments exceeding $34bn, and did not necessitate any external equity investment.
The composition of the lender group indicates significant demand for US LNG investment not only domestically but also in Europe and Asia.
The lender group includes Bank of America, Barclays, Deutsche Bank, Goldman Sachs, J.P. Morgan, Mizuho, Santander and Wells Fargo.
ING and Santander acted as lead arrangers for the construction term loan and working capital facility of CP2 LNG phase one.
Bank of America and Scotiabank took on the role of lead arrangers for CP2 LNG phase one’s equity bridge loan.
Latham & Watkins provided legal counsel to Venture Global, and Skadden, Arps, Slate, Meagher & Flom represented the lenders across all facilities.
In June, Venture Global commenced site work at the CP2 LNG facility after receiving final approval from the US Federal Energy Regulatory Commission.
