Venture Global Completes Finance for Calcasieu LNG

Venture Global LNG has closed project financing for the company’s Calcasieu Pass LNG facility and associated TransCameron pipeline in Cameron Parish, Louisiana, it said August 19. The proceeds of the debt and equity financing fully fund the balance of the construction and commissioning of Calcasieu Pass.  Full site construction has been underway since February 2019, and the project is expected to reach its commercial operations date at some point in 2022. But so far the company has not formally announced its final investment decision.

Stonepeak Infrastructure Partners provided a $1.3bn equity investment for the project in May. The lender group for the company’s $5.8bn construction financing comprises  North American, European and Asian banks.

Venture Global LNG co-CEOs Mike Sabel and Bob Pender said the company's goal had "always been to lower the cost of electricity by delivering clean, low-cost LNG to the world. The closing of our financing is the culmination of years of hard work, and we want to sincerely thank our Venture Global team, our construction partners, our foundation customers, our lenders and advisors, Cameron Parish and our local partners in Louisiana.”

Calcasieu Pass has received all necessary permits, including Federal Energy Regulatory Commission approval and Non-Free Trade Agreement export authorisation from the Department of Energy.  The project has 20-year LNG sale and purchase agreements with Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG.  Venture Global LNG is also developing the 20mn mt/yr Plaquemines LNG project and the 20mn mt/yr Delta LNG project, both in Plaquemines Parish, Louisiana. 

Morgan Stanley served as financial advisor to Venture Global for the transaction.  Latham & Watkins served as counsel to Venture Global and Skadden, Arps, Slate, Meagher & Flom served as counsel to the lenders.