Venture Global LNG proceeds phase 2 of Plaquemines, LA export plant

U.S. liquefied natural gas (LNG) company Venture Global LNG said on Monday that it will go forward with the second phase of its Plaquemines LNG export plant in Louisiana after securing $7.8 B of financing.

Phase two's final investment decision (FID) comes after the first phase was sanctioned in May.

Venture Global said that completes about $21 B in total for Plaquemines, the largest project financing ever done in the space, to build the terminal that would produce about 20 MMtpy of LNG.

“Venture Global is proud to announce a positive FID for phase two of Plaquemines LNG, less than 10 months after sanctioning phase one,” Venture Global Chief Executive Mike Sabel said in a press release.

Demand for U.S. LNG increased after several countries around the world slowed purchases of Russian energy and imposed sanctions on Moscow after its invasion of Ukraine in February 2022.

The combination of those sanctions and the shutdown of Freeport LNG's export plant in Texas helped drive gas prices to record highs in Europe and Asia during the summer 2022.

Analysts have said the first phase at Plaquemines could start producing LNG in 2024, and the second in 2025.

Venture Global said it issued full notice to KZJV to continue construction of phase 2, making it the first U.S. project to take FID in 2023.

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