Venture Global to Spend Over $10 Billion on Fourth Louisiana LNG Plant

(Reuters) — U.S. liquefied natural gas (LNG) company Venture Global LNG said on Thursday that it will invest more than $10 billion to develop a fourth LNG export facility in Louisiana.

The proposed CP2 facility will be located adjacent to its Calcasieu Pass LNG export plant, which is under construction and could produce first LNG in test mode later this year. Analysts have estimated Calcasieu Pass cost about $4.5 billion.

“These two projects (Calcasieu and CP2), combined with our Plaquemines LNG facility now under construction, represent more than $20 billion of investment in the State of Louisiana," Venture Global Chief Executive Mike Sabel said in a statement.

Louisiana Governor John Bel Edwards said in the release that "The CP2 facility in Cameron (Parish) will create more than 1,000 new permanent jobs and thousands of construction jobs in the area, which will have a significant impact on our economy."

The CP2 project is designed to produce about 20 million tonnes per annum (MTPA) of LNG and will incorporate technology to reduce the amount of carbon dioxide released into the atmosphere.

"As Louisiana pursues a goal of net-zero emissions by 2050, projects that feature carbon capture and sequestration allow our state to sustain industry without sacrificing our long-term carbon-reduction goals," Edwards said.

In total, Venture Global has about 70 MTPA of LNG export capacity under construction or development in Louisiana, including the 10-MTPA Calcasieu Pass, 20-MTPA Plaquemines, 20-MTPA Delta and the 20-MTPA CP2.

Venture Global has entered long-term agreements to sell LNG to units of several companies around the world, including China Petroleum and Chemical Corp (Sinopec), Royal Dutch Shell PLC, BP PLC, Edison SpA, Galp Energia SGPS SA, Repsol SA and Polish Oil and Gas Co (PGNiG).

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