Calcasieu Pass LNG Terminal

From Global Energy Monitor
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Calcasieu Pass LNG Terminal is an operating LNG terminal in Cameron Parish, Louisiana, United States.

Location

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Project details

  • Owner: Venture Global Calcasieu Pass, LLC[1][2]
  • Operator: Venture Global Calcasieu Pass, LLC[3][2]
  • Parent: Venture Global LNG[1]
  • Location: Cameron Parish, Louisiana, United States
  • Coordinates: 29.77292736, -93.3343038 (exact)
  • Capacity: 12 mtpa[4][5]
    • Baseload nameplate capacity: 10 mtpa (~0.66* mtpa per train)[5]
    • Peak nameplate capacity: 12 mtpa (~0.79 mtpa per train)[5]
  • Status:
    • Trains 1–12: Operating[6][7][2]
    • Trains 13–18: Construction[2]
  • Type: Export[5]
  • Trains: 18[4]
  • Cost: US$4.5 billion[8]
  • Financing: US$2 billion equity investment from Venture Global LNG and Stonepeak Infrastructure Partners; US$5.7 billion in loans from a consortium of international banks;[9] US$220 million debt facility from Morgan Stanley;[10] US$2.5 billion bond issue with participation from 13 international commercial banks[11]
  • Start year:
    • Trains 1–8: 2022[4][12]
    • Trains 9–18: 2022–2023


*Note the project's website says 0.626 mtpa per train as of May 2022.[1]

Background

Calcasieu Pass LNG Terminal is a proposed LNG terminal in Louisiana, United States.[13] The facility would be located in Cameron Parish, Louisiana, south of Lake Charles. [14] Originally, construction was expected to start in 2019 with full commencement of operations in the last quarter of 2019.[15] However, it wasn't until February of 2019 that Venture Global Calcasieu Pass received authorization from the Federal Energy Regulatory Commission (FERC) to construct the export facility in Cameron Parish and the associated TransCameron Pipeline.

The project has binding 20-year sale and purchase agreements with Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG, representing 8 million mt/year of the terminal's total planned 10 million mtpa of offtake under long-term agreements. Venture Global has said it expects that it will contract the remaining 2 million mt/year of capacity before the completion of construction.[16] As intended, construction began in February 2020.[17] Analysts have forecasted that the terminal could start producing LNG in test mode by late 2021.[8]

In December 2021, FERC approved Venture Global LNG to begin commissioning liquefaction systems at the second block, having approved the first block in November 2021.[4] The terminal was initially scheduled for a potential operational date in 2021[18], though this was later amended to 2022.[4]

Also in December 2021, FERC issued a notice that Venture Global had requested to increase the total peak achievable liquefaction capacity from 12 mtpa to 12.4 mtpa.[19]

LNG production at the Calcasieu Pass Terminal started on January 19, 2022, and as of February 2022, four blocks (each with two trains) were cleared for commissioning.[6][7]

According to the IGU World LNG report - 2022 Edition, trains 1-12 became operation (summing to 7.5 MTPA of capacity) came online in March 2022. The July report goes on to say that the remaining six trains (T13-T18), with a total capacity of 3.8 MTPA, are "set to come online by the end of 2022." These terminals would "make the United States the market with the largest operational liquefaction capacity."[20]

Carbon capture and storage facility

In May 2021, Venture Global LNG announced that it plans to capture and sequester carbon at both its Calcasieu Pass Terminal and Plaquemines LNG Terminal in Louisiana. This is part of a growing trend among energy firms to reduce greenhouse gas emissions to meet increased customer and government demand for cleaner energy to reduce damage caused by climate change. The carbon capture and storage (CCS) project would compress carbon dioxide at its sites and transport the gas to be permanently stored in subsurface saline aquifers. The company estimates that it will capture and sequester an estimated 500,000 tons of carbon per year from both Calcasieu and Plaquemines.[21] Commenting on the CCS project in June 2021, the company's CEO Michael Sabel said: "We don't need any new technology to do it. We don't need any additional outside funds to do it. We're able to do it as soon as the permitting process allows us to go forward."[8]

Financing

In May 2019, Venture Global LNG Inc. received a US$1.3 billion equity investment from Stonepeak Infrastructure Partners to fund construction of the terminal.[22]

In August 2019, the project reached financial close on US$5.77 billion in loans from a consortium of international private banks including Goldman Sachs, JPMorgan Chase, Mizuho, Santander and Sumitomo Mitsui Banking Corporation.[9] The project received an additional US$220 million debt facility from Morgan Stanley to be used to finalise engineering work and commence site construction activity.[10]

Part of a US$500 million loan from Bank of America, JPMorgan Chase, Mizuho and Morgan Stanley which Venture Global LNG secured in February 2021 was reported to be going to the Calcasieu Pass project.[23]

In August 2021, Venture Global LNG completed a US$2.5 billion bond offering, the proceeds of which are principally to prepay certain amounts outstanding under its existing loans for the project. The bonds are guaranteed by TransCameron Pipeline, an affiliate of Venture Global Calcasieu Pass.[24] The participating banks in the bond issue were Morgan Stanley, JP Morgan, Bank of America Merrill Lynch, Goldman Sachs, ING, Mizuho, Natixis, Nomura, Royal Bank of Canada, Santander, Scotia Capital, SMBC Nikko Securities and Industrial and Commercial Bank of China.[11]

Articles and resources

References

  1. 1.0 1.1 1.2 "Calcasieu Pass Facility • Venture Global LNG". Venture Global LNG. Retrieved 2022-04-14.
  2. 2.0 2.1 2.2 2.3 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 11, 2022.
  3. U.S. Liquefaction Capacity. EIA. Accessed May 2020.
  4. 4.0 4.1 4.2 4.3 4.4 "U.S. approves Venture Global La. Calcasieu 2 LNG plant commissioning". Nasdaq. Retrieved 2021-12-14.
  5. 5.0 5.1 5.2 5.3 U.S. Liquefaction Capacity, Energy Information Administration, November 3, 2020
  6. 6.0 6.1 Marcy de Luna, Venture Global LNG's Calcasieu Pass plant begins production in Louisiana, Reuters, Feb. 4, 2020
  7. 7.0 7.1 "Venture Global gets OK on 4th LNG block at Louisiana Calcasieu plant". Reuters. 2022-02-08. Retrieved 2022-04-14.
  8. 8.0 8.1 8.2 Scott DiSavino, Venture Global can build Louisiana carbon capture after getting permits, Reuters, Jun. 23, 2021
  9. 9.0 9.1 Calcasieu Pass LNG, IJGlobal, accessed Jun. 4, 2020
  10. 10.0 10.1 Calcasieu Pass LNG Bridge Facility, IJGlobal, Sep. 30, 2019
  11. 11.0 11.1 Calcasieu Pass LNG & Carbon Capture and Storage Bond Facility 2021, IJGlobal, accessed Sep. 22, 2021
  12. Nair, Rajesh; Kawasaki, Atsuko; Wang, Analyst Zhuwei (2022-04-14). "Asian fuel oil prices simmer as peak summer demand looms". www.spglobal.com. Retrieved 2022-04-14.
  13. Calcasieu Pass LNG Export Terminal Project, A Barrel Full, 14 January 2015
  14. Calcasieu Pass, Venture Global LNG, Accessed 21 May 2017
  15. Venture Global LNG raises $55 million, LNG World News, 4 May 2016
  16. Harry Weber, Forward spreads point to further upside for early startup of new US LNG capacity, S&P Global, May 24, 2021
  17. Venture Global tests Calcasieu Pass LNG compression system Oil & Gas Journal, Apr. 3, 2020
  18. Harry Weber, Louisiana Calcasieu Pass LNG terminal could ship first cargo in late 2021: Venture Global, S&P Global, Mar. 18, 2021
  19. "Venture Global Calcasieu Pass, LLC; Notice of Application To Amend and Establishing Intervention and Protest Deadline". Federal Register. Retrieved 2022-05-05.
  20. "World LNG Report 2022". International Gas Union. July 6, 2022. Retrieved July 11, 2022.
  21. Venture Global Launches Carbon Capture and Sequestration Project, Venture Global LNG press release, May 27, 2021
  22. Stonepeak invests $1.3 billion in Calcasieu Pass LNG Oil and Gas Journal, May 28, 2019
  23. Two LNG export projects move forward in the United States, Enerdata, Feb. 15, 2021
  24. Venture Global Announces Closing of $2,500,000,000 Senior Secured Notes by Venture Global Calcasieu Pass, LLC, Venture Global LNG press release, Aug. 5, 2021

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