US approves work at Plaquemines LNG export hub
The US Federal Energy Regulatory Commission on October 29 approved a request from Venture Global LNG to start work at its planned Plaquemines export facility in Louisiana.
The agency said in a letter to Fory Musser, the senior vice president of development at Venture Global, that the company could start early activities near a levee in Plaquemines Parish in preparation for later construction work.
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“Please note that this approval does not grant Venture Global the authority to construct, commission, or introduce hazardous fluids into other project facilities at the LNG terminal,” the letter read.
In April, Venture Global formed a new partnership with engineering firm Zachry Group to facilitate development of the project.
Plaquemines LNG already has binding offtake agreements with Poland’s PGNiG and French utility EDF for a total of 3.5mn mt/yr from Phase 1 and earlier this month was reported to have finalised a pair of 20-year agreements with China state-owned Sinopec for a combined 4mn mt/yr. A final investment decision (FID) on the liquefaction terminal and its companion Gator Express pipeline project is pending.
Venture in February secured a $500mn term loan with a banking syndicate led by JPMorgan Chase that it will use, in part, to fund pre-FID construction activities at Plaquemines.
FERC reminded Venture that it needs to follow additional procedural steps, including any relevant issues with the federal Pipeline and Hazardous Materials Safety Administration, part of the Energy Department.
“Furthermore, we note that FERC staff look to continuously identify improvements to the safety and reliability of LNG facilities that may be realised during or after construction and throughout operations and may make recommendations in the future in this regard,” the letter read.