Calcasieu Pass LNG Terminal

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Calcasieu Pass LNG Terminal is an LNG terminal in Cameron Parish, Louisiana, United States. It is currently under construction.[1]

Location

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Project Details

  • Owner: Venture Global Calcasieu Pass, LLC
  • Parent: Venture Global LNG
  • Location: Cameron Parish, Louisiana, United States
  • Coordinates: 29.8191125,-93.3294677 (approximate)
  • Capacity: 10 mtpa (1 mtpa per train)[2]
  • Status: Construction[3]
  • Type: Export[2]
  • Trains: 10[2]
  • Cost: US$4.5 billion[4]
  • 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;[5] US$220 million debt facility from Morgan Stanley
  • Start Year: 2021[6]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Calcasieu Pass LNG Terminal is a proposed LNG terminal in Louisiana, United States.[7] The facility would be located in Cameron Parish, Louisiana, south of Lake Charles. [8] Originally, construction was expected to start in 2019 with full commencement of operations in the last quarter of 2019.[9] 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 10 million mt/year 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.[10] As intended, construction began in February 2020.[1] Analysts have forecasted that the terminal could start producing LNG in test mode by late 2021.[4]

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.[11] 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."[4]

Financing

In May of 2019, Venture Global LNG Inc. received a US$1.3 billion equity investment from Stonepeak Infrastructure Partners to fund construction of the terminal.[12] In August of 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.[13] 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.[14] 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.[15]

Articles and resources

References

  1. 1.0 1.1 Venture Global tests Calcasieu Pass LNG compression system Oil & Gas Journal, Apr. 3, 2020
  2. 2.0 2.1 2.2 U.S. Liquefaction Capacity, Energy Information Administration, November 3, 2020
  3. 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  4. 4.0 4.1 4.2 Scott DiSavino, Venture Global can build Louisiana carbon capture after getting permits, Reuters, Jun. 23, 2021
  5. Calcasieu Pass LNG, IJGlobal, accessed Jun. 4, 2020
  6. Harry Weber, Louisiana Calcasieu Pass LNG terminal could ship first cargo in late 2021: Venture Global, S&P Global, Mar. 18, 2021
  7. Calcasieu Pass LNG Export Terminal Project, A Barrel Full, 14 January 2015
  8. Calcasieu Pass, Venture Global LNG, Accessed 21 May 2017
  9. Venture Global LNG raises $55 million, LNG World News, 4 May 2016
  10. Harry Weber, Forward spreads point to further upside for early startup of new US LNG capacity, S&P Global, May 24, 2021
  11. Venture Global Launches Carbon Capture and Sequestration Project, Venture Global LNG press release, May 27, 2021
  12. Stonepeak invests $1.3 billion in Calcasieu Pass LNG Oil and Gas Journal, May 28, 2019
  13. Calcasieu Pass LNG IJGlobal, Sep. 30, 2019
  14. Calcasieu Pass LNG Bridge Facility IJGlobal, Sep. 30, 2019
  15. Two LNG export projects move forward in the United States, Enerdata, Feb. 15, 2021

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External resources

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