Stonepeak to provide $1.3bn investment in Venture Global’s LNG site

Venture Global LNG and Stonepeak Infrastructure Partners have signed definitive agreements, under which Stonepeak will exclusively provide a $1.3bn equity investment in the ten million tonnes per annum (MTPA) Calcasieu Pass LNG export facility.

The LNG export facility is located in Cameron Parish, Louisiana.

The total committed capital to finance the construction of Calcasieu Pass, along with the ongoing development of Venture Global’s 20mtpa Plaquemines LNG and 20mtpa Delta LNG projects, now totals $2.bn.

Venture Global LNG Co-CEO Mike Sabel said: “We are happy to announce this important milestone for Calcasieu Pass and very proud to partner with a world-class investor like Stonepeak.”

Venture Global LNG Co-CEO Bob Pender added: “Calcasieu Pass is already significantly advanced in both site construction and module manufacturing, owing to the $855 million previously raised to date. We are finalising the balance of our Calcasieu Pass financing with our consortium of project finance lenders, and we look forward to providing LNG to our global customers, Shell, BP, Edison S.p.A, Galp, Repsol and PGNiG, in 2022.”

Stonepeak senior managing director Jack Howell said: “Calcasieu Pass will be a critical provider of LNG to its blue-chip customer base and we look forward to supporting Venture Global, who we believe to be a global leader in developing low-cost LNG production, in its efforts to bring cost-advantaged supply to new and existing markets.”

Venture Global has hired Baker Hughes to provide a process solution for the 10mtpa Calcasieu Pass project, while Kiewit is designing, constructing, commissioning and testing the Calcasieu Pass facility.

Construction activities have started on the 10mtpa Calcasieu Pass project, with more than $250m spent on site preparation work, final engineering/equipment purchases and fabrication.

Morgan Stanley has been appointed as the financial adviser for Venture Global LNG, while Latham & Watkins served as Venture Global’s legal counsel. Simpson Thacher worked as legal counsel for Stonepeak.

Based in Virginia, Venture Global is a provider of LNG to be supplied from North American natural gas basins, while Stonepeak is a New York-based investment firm.