Venture Global Takes US FID on LNG
US LNG export project operator Venture Global LNG now has the required regulatory approval for its Calcasieu Pass LNG export facility, and announced a final investment decision (FID) February 22. The company also has approval for the associated TransCameron Pipeline in Cameron Parish, Louisiana.
With the Federal Energy Regulatory Commission (Ferc) approval in hand, and binding 20-year sale and purchase agreements (SPAs) with European companies Shell, BP, French Edison, Portuguese Galp, Spain's Repsol and Polish PGNiG, it said it plans "to immediately start building work".
It said: "This milestone is the culmination of years of effort, and we are proud of the excellent work done by our regulatory, environmental, legal and engineering teams. We are excited to begin construction of our Calcasieu Pass project and deliver low-cost LNG to our global customers in 2022.”
The 10mn metric tons/yr nameplate 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. Venture Global has executed an integrated turnkey engineering, procurement and construction contract with Kiewit to design, engineer, construct, commission, test and guarantee the Calcasieu Pass facility.
The company is also developing the 20mn mt/yr Plaquemines LNG export facility and associated Gator Express Pipeline in Plaquemines Parish, Louisiana. The plant received its draft environmental impact statement last November and it expects to receive its final environmental impact statement May 3, according to Ferc's timetable. Ferc has established a 90-day federal authorisation decision deadline of August 1, 2019. So far Plaquemines LNG has executed a binding 20-year offtake agreement with PGNiG.
It said mid-January that it was "critically important" to have the Ferc approval for Calcasaieu by January 22, without saying why a delay was on the cards.
“Significant” financial commitments to vendors and suppliers have been made, the company said in its filing, largely in the expectation that Ferc would act “on a timely basis” and in accordance with its public pronouncements regarding approval timing.
Earlier this month US ExxonMobil and Qatar Petroleum took FID on their Golden Pass LNG export project in Texas.