Venture Global Awards Calcasieu EPC, Raises Cash
US export project developer Venture Global LNG has awarded Kiewit the engineering, procurement, and construction (EPC) contract for the Calcasieu Pass LNG export project in Louisiana, they said December 6. Kiewit will design, engineer, construct, commission, test and guarantee the facility, which carries a 10mn metric tons/yr nameplate capacity. Completion is expected in 2022.
The same day, Venture said it had signed a $220mn bridge loan facility with Morgan Stanley 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 the engineering work and start site construction, and so reduce schedule risk for the offtakers, it said. Venture has already raised $635mn in equity.
Venture Co-CEO Bob Pender said that the Kiewit team brings "decades of construction experience, an unparalleled safety record, and on-time, on-budget execution of major infrastructure projects, including the Cove Point LNG export project in Lusby, Maryland. This partnership supports the continued timely execution of our strategy".
Co-CEO Mike Sabel added that "finalising this contract, which meets our budget, schedule, and finance requirements, is one of the most important milestones to date for our company and the culmination of our development plans".
Kiewit CEO Bruce Grewcock said that the project "will be a model for supplying low-cost, clean and reliable energy to the global market".
The Calcasieu Pass facility will employ a comprehensive process solution from Baker Hughes, a GE company (BHGE) that uses mid-scale, modular, factory-fabricated liquefaction trains as well as a 5x2 711-MW combined-cycle gas-fired turbines. Construction will start early 2019 following the receipt of all required regulatory approvals, including the final order from the US Federal Energy Regulatory Commission, expected no later than January 22.
The project has executed binding 20-year offtake agreements with world-class partners including European companies Shell, BP, EDF's Italian subsidiary Edison, Portugal's Galp, Spain's Repsol and Poland's PGNiG.
The company is also developing the 20mn mt/yr Plaquemines LNG export facility, also in 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.
The gas will come from US onshore production.