U.S.-based Venture Global LNG announced final approval and financial closing for $15.1 billion for the first phase of the CP2 LNG project, a liquefied natural gas export terminal located in the state of Louisiana. The initial phase will be accompanied by the CP Express pipeline, designed to facilitate supply connectivity.
This breakthrough makes CP2 the project with the largest independent financing in the history of the industry, second only to the combined rounds of Plaquemines LNGalso operated by Venture Global. The highlight of this transaction is that, despite global financial conditions, the company did not require external equity investment, given the interest shown by major international banks.
Global interest in U.S. gas
The loan structure attracted commitments in excess of US$34 billion from entities such as Bank of America, ING, Scotiabank, BBVA, Goldman Sachs and JP Morgan, among many others. ING and Santander led the organization of the construction and working capital loan, while Bank of America and Scotiabank led the equity bridge loan.
The plant CP2 LNG PLANT plant will have a maximum production capacity of 28 million tons per year. For its Phase 1, long-term supply contracts have already been signed with customers in Europe, Asia and other markets, positioning it as a key player in the stability of global energy supply from 2027 onwards.
Key strategic support for the CP2 LNG project
According to Mike Sabel, CEO of Venture Global, this is FID’s third greenfield project in less than six years and brings the company’s total contracted capacity in Louisiana to 43.5 MTPA. Sabel noted that the strength of CP2’s operating model and early preparation have been key to receiving unprecedented support from the capital markets.
Legal advice was provided by Latham & Watkins LLP for Venture Global and Skadden, Arps, Slate, Meagher & Flom LLP for the lenders. This financing decision marks a new chapter in the consolidation of the U.S. as a strategic supplier of LNG to the global market.
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Source and photo: Venture Global
