Plaquemines LNG Terminal

From Global Energy Monitor
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Plaquemines LNG Terminal is a proposed LNG terminal in Louisiana, United States.

Location

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Project Details

Phase 1

  • Owner: Venture Global Plaquemines LNG, LLC
  • Parent Company: Venture Global LNG, Inc.
  • Location: Plaquemines Parish, Louisiana, United States
  • Coordinates: 29.605090, -89.878356 (approximate)
  • Type: Export[1]
  • Trains: 18 trains (2 trains per block, and 9 blocks per phase)[1]
  • Capacity: 10 mtpa (0.56 mtpa per train)[2]
  • Cost: US$8.5 billion[3]
  • Financing: Initial US$500 million loan from Bank of America, JPMorgan Chase, Mizuho and Morgan Stanley (Phases 1 and 2)[4]
  • Status: Proposed[1]
  • Start Year: 2024[3]

Phase 2

  • Owner: Venture Global Plaquemines LNG, LLC
  • Parent Company: Venture Global LNG, Inc.
  • Location: Plaquemines Parish, Louisiana, United States
  • Coordinates: 29.605090, -89.878356 (approximate)
  • Type: Export[1]
  • Trains: 18 trains (2 trains per block, and 9 blocks per phase)[1]
  • Capacity: 10 mtpa (0.56 mtpa per train)[2]
  • Status: Proposed[1]
  • Start Year: 2025[3]

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

Background

Venture Global's Plaquemines LNG Terminal is a proposed LNG terminal in Louisiana, United States. The 632-acre site is located on the Mississippi River.[5]

Construction was expected to begin in 2018. The company is also proposing the construction of two natural gas pipelines to connect existing pipelines to the site, including the Gator Express Gas Pipeline.[6]

In July of 2017, the project received approval from the Department of Energy (DOE) to export LNG to Free Trade Agreement nations.[7] In October of 2019, the project received approval from the Department of Energy (DOE) to export up to 3.4 billion cubic feet per day (Bcf/d) to non-Free Trade Agreement nations.[8]

In September of 2019, the project received full Federal Energy Regulatory Commission (FERC) approval. FERC also approved the associated Gator Express Gas Pipeline system, which will bring natural gas from existing pipelines to the new facility in Plaquemines Parish.[9]

In June of 2019, the company struck a deal with PGNiG to buy 2.5 million tons of liquefied natural gas from the yet-to-be-built Plaquemines terminal, up from 1 million in an earlier agreement, suggesting that the project is still proceeding.[10]

In April of 2020, Venture Global Plaquemines LNG LLC and Electricite de France SA (EDF) entered into a 20-year sales and purchase agreement (SPA) for 1 million metric tons per annum (mtpa). Under this agreement, EDF will purchase LNG on a free onboard basis for a 20-year term starting from the commercial operation date of the export facility.[11] The energy and shipping brokerage Poten & Partners also disclosed that the final investment decision (FID) for the terminal had been delayed beyond the original FID timing of 2020. It cited COVID-19, plunging demand and the crash in oil prices as the reasons for the delay.[12]

In February of 2021, with the securing of initial project financing, Venture Global LNG said that it expected to make a final investment decision (FID) by mid-2021, with construction also expected to start before the end of the year. Thereafter the first liquefaction unit would be expected to enter service in 2024 with the project projected to be fully operational in 2025.[3]

Carbon capture and storage facility

In May 2021, Venture Global LNG announced that it plans to capture and sequester carbon at both its Plaquemines LNG Terminal and Calcasieu Pass 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 Plaquemines and Calcasieu.[13] 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."[14]

Financing

A US$500 million loan to partly pay for construction of the terminal was agreed with Bank of America, JPMorgan Chase, Mizuho and Morgan Stanley in February 2021.[4]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 Plaquemines LNG Terminal Hydrocarbons Technology, accessed April 14, 2021
  2. 2.0 2.1 U.S. Liquefaction Capacity, Energy Information Administration, November 3, 2020
  3. 3.0 3.1 3.2 3.3 Two LNG export projects move forward in the United States, Enerdata, Feb. 15, 2021
  4. 4.0 4.1 Venture Global gets loan for Louisiana Plaquemines LNG construction, Reuters, Feb. 11, 2021
  5. Venture Global Plaquemines LNG, Plaquemines LNG, accessed May 2017
  6. $8.5 billion natural gas project in Plaquemines Parish to create 250 jobs Nola.com, 22 December 2016
  7. Venture Global LNG, Plaquemines LNG Project, accessed July 2017
  8. Nick Blenkey, Plaquemines LNG export project gets DOE approval Marine Log, October 17, 2019
  9. Rachael Thomas, $8.5 billion natural gas liquefaction facility coming to Plaquemines Parish WAFB9, September 30, 2019
  10. Marissa Luck,Venture Global raises $675M more for LNG projects Houston Chronicle, June 28, 2019
  11. Venture Global Plaquemines LNG, EDF enter agreement BIC Magazine, April 20, 2020
  12. John Snyder FID’s delayed by global uncertainty Riviera Maritime Media, Apr. 24, 2020
  13. Venture Global Launches Carbon Capture and Sequestration Project, Venture Global LNG press release, May 27, 2021
  14. Scott DiSavino, Venture Global can build Louisiana carbon capture after getting permits, Reuters, Jun. 23, 2021

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External resources

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