Stonepeak Takes Stake in Venture Global Project
US developer Venture Global has sold private investor Stonepeak some equity in its 10mn metric tons/yr planned Calcasieu Pass LNG export facility in Cameron Parish, Louisiana for $1.3bn, it said May 28. Stonepeak CEO James Wyper will join the board of Calcasieu Pass as part of the deal.
Venture said the deal brings total committed capital to fund the construction of Calcasieu Pass and the continued development of Venture Global’s 20mn mt/yr Plaquemines LNG and 20mn mt/yr Delta LNG facilities to $2.2bn. It did not say what percentage Stonepeak had bought, or when it would take final investment decision.
Venture Global said Stonepeak "brings a great depth of LNG knowledge and a track record of investing in exceptional infrastructure projects throughout North America.”
Calcasieu Pass is already "significantly advanced in both site construction and module manufacturing, owing to the $855mn previously raised to date." It added that it was finalising the balance of its Calcasieu Pass financing with project finance lenders. Its customers are Anglo-Dutch Shell, UK BP, French-owned Edison, Portuguese Galp, Spanish Repsol and Polish PGNiG and first deliveries are due in 2022.”
Stonepeak said it was a "long-term believer" in the increasing importance of LNG as a global source of greener, cheaper energy. "Calcasieu Pass will be a critical provider of LNG to its blue-chip customer base and we look forward to supporting Venture Global, who we believe to be a global leader in developing low cost LNG production, in its efforts to bring cost-advantaged supply to new and existing markets," it said.
Calcasieu Pass will employ a comprehensive process solution from Baker Hughes, a GE company (BHGE) that uses highly efficient mid-scale, modular, factory-fabricated liquefaction trains. Kiewit is designing, engineering, constructing, commissioning, testing and guaranteeing the Calcasieu Pass facility.
Calcasieu Pass has received all necessary permits and construction activities are ongoing with over $250mn spent on site preparation work, final engineering and equipment purchases and fabrication. Venture expects to start work on the Plaquemines project next, once it has received all necessary approvals expected in the third quarter.
Morgan Stanley served as the exclusive financial advisor for Venture Global LNG on this transaction and Latham & Watkins LLP served as Venture Global’s legal counsel. Simpson Thacher served as legal counsel for Stonepeak. .