Venture Global has announced it will set up one of the U.S.’s largest new liquefied petroleum gas exporting plants off the coast of Louisiana, the first such project approved since Russia’s invasion of Ukraine prompted a rush to secure more U.S. energy supplies to a strained global market.
The $ 13.2 billion pledged to develop, including a pipeline, also marked the world’s largest project financing deal in 2022, Venture Global said Wednesday. The investment is a sign of a renewed appetite of investors for fossil fuel projects amid fears of a shortage of supply and rising oil and gas prices in recent months.
The Plaquemines project will supply more than 13 million tons per year of LNG, equivalent to about 15% of the total U.S. export capacity. LNG is a super-cooled type of natural gas that can be loaded on ships for export worldwide.
The EU and the US have vigorously announced an agreement to increase LNG supply to Europe in the coming years – part of the White House’s effort to help Europe break its dependence on Russian gas. US exporters, including Cheniere Energy, the country’s largest, Supply to the EU in recent months.
Venture Global did not say when Plaquemines will start exporting, but the company boasted of its rapid construction methods and recently launched its first LNG export project on Calcasieu Pass, also in Louisiana, after a final decision to build it in 2019.
“Plaquemines will build on the success of Calcasieu Pass, which broke world records for speed and performance,” said Mike Sable, CEO of Venture Global. “The project attracted strong financial and commercial support that allowed us to officially approve this project at a critical moment for energy markets.”
Venture Global said Plaquemines had obtained all the necessary permits, including approval from federal bodies, and secured long-term sales and purchase contracts covering 80 percent of the project’s output, which eventually include an expansion to 20 million tons per year.
LNG customers include buyers in Poland and China, as well as Shell, EDF and ExxonMobil.
Venture Global to build $13bn LNG plant on US Gulf coast Source link Venture Global to build $13bn LNG plant on US Gulf coast