Venture Global LNG, Inc. has announced that it has entered into a US$220 million bridge loan facility with Morgan Stanley Senior Funding, Inc. and associated lenders.
Subject to the satisfaction of customary conditions precedent, the loan proceeds will be available immediately in full and will be used to finalise engineering work and commence site construction activity for the company’s 10 million tpy Calcasieu Pass LNG export project upon receipt of regulatory approvals and prior to a formal FID.
Co-CEOs Mike Sabel and Bob Pender jointly stated, “From the beginning, Morgan Stanley recognised our innovative strategy and exacting execution, and they have been a highly valued long-term partner to our team. This US$220 million, along with the US$635 million of equity capital we have raised to date, allows us to finalise advanced engineering, purchase equipment, and commence construction activities at our Calcasieu Pass facility in the near term, reducing schedule risk for our offtake customers.”
The 10 million tpy Calcasieu Pass facility will employ a comprehensive process solution from GE Oil & Gas, LLC, part of Baker Hughes, a GE company (BHGE) and will utilise mid scale, modular, factory-fabricated liquefaction trains. Calcasieu Pass LNG’s selected EPC contractor, Kiewit, will commence construction of the facility following the receipt of all required regulatory approvals, including the Final Order from the US Federal Energy Regulatory Commission (FERC), which is currently scheduled to be issued no later than 22 January 2019. The project has executed binding 20-year offtake agreements with world-class partners including Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG.
The company is also developing the 20 million tpy Plaquemines LNG export facility in Plaquemines Parish, Louisiana, which has executed its first binding 20-year offtake agreement with PGNiG. Venture Global LNG expects to take formal final investment decisions (FID) on both its Calcasieu Pass and Plaquemines LNG projects in 2019.