Venture Global to proceed with second phase of CP2 LNG project

Venture Global's Calcasieu Pass LNG export terminal in Cameron, Louisiana. Photographer: Francois Picard/AFP/Getty Images

Venture Global will proceed with phase 2 of its CP2 liquefied natural gas project in Louisiana, the company said on Friday.

The U.S.’ second-largest LNG supplier said the project is strategically important to global energy supply and security.

LNG prices have been elevated since Qatar, which produces 20 per cent of the world’s LNG, shut down its LNG facility due to the ongoing war between the U.S./Israel and Iran.

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Gas traded near US$17 per million British thermal units at the Dutch Title Transfer Facility benchmark in Europe and $16 at the Japan-Korea Marker benchmark in Asia.

CP2 will have a peak production capacity of 29 million metric tons per annum and has contracted to sell nearly all of its LNG on a long-term basis with customers mainly in Europe and Asia, the company said on Friday.

Venture Global said it raised $8.6 billion in project financing for phase 2, having already secured $34 billion for phase 1, and did not require any equity investment.

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CP2 is Venture Global’s third LNG project and the company has moved in five years from a startup to a total contracted capacity of 49 MTPA.

(Reporting by Tanay Dhumal in BengaluruEditing by Rod Nickel)