Venture Global LNG has taken a final investment decision on its Plaquemines LNG project, giving the green light to construction of a first phase that will cost in excess of $13bna and require a fleet of LNG carriers.
The decision comes as the US LNG industry is seeking to boost exports to Europe to address immediate and longer-term supply disruption as countries there seek to reduce their dependence on Russia’s pipeline gas after Russia invaded Ukraine.
The first phase of the LNG export facility, which will be located in Louisiana, will have a maximum capacity of 13.33 million tonnes per annum (mtpa).
The project's construction will move forward as quickly as possible, Venture Global's chief executive Mike Sabel said on Wednesday.
“The project has attracted robust financial and commercial support which has enabled us to formally sanction this project at a critical moment for energy markets,” he said. “Speed matters more than ever and Venture Global is uniquely positioned to quickly bring US LNG to the market to support global energy security and environmental progress.”
Venture Global hopes to bring the Plaquemines LNG project online in 2024.
When fully completed, it will have a capacity of 20 mtpa.
The US-based liquefied natural gas exporter said it had closed on $13.2bn in financing for the initial phase of Plaquemines LNG and the associated Gator Express gas pipeline.
TradeWinds has reported that Plaquemines LNG’s offtakers could require 20 LNG carriers to lift the volumes they have contracted, and Venture Global placed an order in March for three newbuildings of its own at Daewoo Shipbuilding & Marine Engineering.
This is an excerpt of a story by Upstream, NHST’s news publication covering the oil and gas industry. Read the full story here.
