CP2 LNG Terminal
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CP2 LNG Terminal, also known as Calcasieu Pass 2 LNG Terminal, is a proposed LNG terminal in Cameron Parish, Louisiana, United States.[1]
Location
Project details
- Owner: Venture Global CP2 LNG, LLC[2]
- Parent: Venture Global LNG[3]
- Location: Cameron Parish, Louisiana, United States[1]
- Coordinates: 29.77427234, -93.32394745 (approximate)
- Type: Export[1]
- Trains: Phase 1: 9 blocks; Phase 2: 9 blocks[1]
- Capacity: Phase 1: 10 mtpa; Phase 2: 10 mtpa (1.1 mtpa per block)[1][4]
- Status: Proposed[5]
- FID Status: Pre-FID (2023)(delayed)[6]
- Costs: more than US$10 billion[7]
- Start year: Phase 1: 2026, Phase 2: 2027[8]
- Associated infrastructure: CP Express Pipeline[1]
Background
In January 2021, Venture Global announced that it was seeking to enter the pre-filing process at the US Federal Energy Regulatory Commission (FERC) for another major LNG export project. This project would be capable of producing up to 24 million tonnes per year (mtpa) in Cameron Parish, Louisiana, and an 87.5-mile pipeline project, called the CP Gas Pipeline, running from Jasper County, Texas, to the facility.[1]
The company already is building the Calcasieu Pass LNG Terminal in Cameron and has received FERC authorization to build the Plaquemines LNG Terminal as well. In 2020, Venture Global also began the early FERC review stage for the Delta LNG Terminal, an up to 24 mtpa facility in Plaquemines Parish, south of New Orleans, although the company did not mention that facility in its latest filing.[1]
The CP2 LNG project would include 18 liquefaction blocks, each with a nameplate capacity of about 1.1 mtpa, four LNG full containment storage tanks, two marine loading berths, and an onsite, 1,400 MW combined cycle gas-turbine power generation station. The LNG terminal would be adjacent to the Calcasieu Pass LNG Terminal.[1]
The project will be built in two phases of 10 mtpa nameplate capacity each, as would the 48-inch-diameter pipeline with 84,000 hp of compression allowing for up to 2 Bcf/d in the first phase, bringing the total up to 4 Bcf/d, in the second. The first phase would start construction with receipt of regulatory approvals, while the second would depend upon market conditions, according to the FERC filing (PL21-1).[1] Phase one construction activities are aimed to be commenced in the second quarter of 2023, with the first deliveries planned for the second quarter of 2025. Full commercial operations are expected to be achieved by mid-2026. Construction of the remaining terminal facilities will be built in the second phase, with construction and operational timelines to be determined by and dependent on market conditions.[4]
In December 2021, Venture Global submitted an application to FERC for authorization to build and maintain the CP2 LNG Terminal and CP Express Pipeline.[9]
In July 2022, FERC suspended the environmental review process for CP2 LNG Terminal and the CP Express Pipeline because Venture Global had failed to provide information related to its draft biological assessment and analysis of the cumulative impacts of the project.[10]
In July 2023, Venture Global received a positive final environmental impact statement from FERC. The company said the project was on track to begin construction by the end of 2023. At this point in time, Venture Global had sold about half of the project's output.[6]
In January 2024, the Biden Administration announced a pause on issuing CP2's non-Free Trade Agreement (FTA) export authorization (see section below).[11]
As of March 2024, Venture Global said the project was still on track to begin operations in 2026, despite the Biden Administration's LNG pause.[12] The company was still planning to spend between US$3.5 and $4 billion on the project this year.[13]
In May 2024, FERC chairman Willie Philips attributed its extended analysis of the CP2 facility to its assessment of the project's potential emissions.[14]
Contracts
In March 2022, Venture Global announced that New Fortress Energy had signed a contract to purchase 1 mtpa of LNG from CP2 LNG over a 20 year period.[15]
In May 2022, Venture Global announced that ExxonMobil LNG Asia Pacific had agreed to purchase 1 mtpa of LNG from the facility for an unspecified, long-term duration.[16]
In June 2022, Venture Global announced a sales and purchase agreement with Chevron under which it will sell 2 mtpa split between CP2 LNG and its Plaquemines LNG Terminal.[17] Venture Global also announced a deal with the German utility EnBW Energie Baden-Wuerttemberg AG, which will buy 1.5 mtpa for 20 years starting in 2026. Venture Global did not specify whether this supply will come from CP2 LNG or one of Venture Global's other projects.[18] Furthermore, Venture Global announced a 20-year SPA for 2.25 mtpa with Germany's Securing Energy for Europe GmbH (SEFE) affiliated with the CP2 project.[19]
In December 2022, Venture Global and Japan's Inpex announced an SPA for the purchase of 1 mtpa over a 20-year period.[20]
In February 2023, Venture Global signed two SPAs with China Gas, which agreed to purchase 1 mtpa each from CP2 LNG and Plaquemines LNG Terminal for a period of 20 years.[21]
In April 2023, Venture Global signed a 20-year, 1-mtpa SPA with Japan's JERA.[22]
In May 2023, Worley was awarded an engineering, procurement, and construction (EPC) contract by Venture Global to build the facility.[23]
In October 2023, a letter to the DOE regarding a change in Venture Global's ownership structure said that Pacific Investment Management LLC (PIMCO) had taken 15.1% of the common equity in VG Holdings, and now indirectly held that ownership share in each of Venture Global's three projects: Plaquemines LNG Terminal, CP2 LNG Terminal, and Calcasieu Pass LNG Terminal.[24]
In June 2024, FERC approved the CP2 project in a 2-1 decision.[25]
Biden Administration LNG Pause
In January 2024, the Biden Administration announced that it would delay issuing non-Free Trade Agreement (FTA) export authorization to CP2 as it reassessed the criteria under which the Department of Energy assesses LNG projects are in the public interest. The administration's reassessment will include consideration of how it should account for project's climate impacts. The LNG pause also impacts other LNG projects that are awaiting non-FTA export authorizations from the DOE.[11]
In June 2024, a federal judge in Louisiana put the Biden Administration's pause on hold, following the request of 16 states that had argued the LNG pause would hurt their economies. According to Politico, "Environmental advocates said the ruling will have no immediate impact on the pending permits for LNG export projects, nor the ongoing study being conducted by DOE's national labs to determine the economic and environmental impacts of those exports."[26]
Financing
In May 2023, Venture Global closed a US$4.5 billion offering of senior secured notes. LNG Prime reported, "The notes have been issued in a series of 8.125 percent senior secured notes due 2028 in an aggregate principal amount of $2.25 billion, and a series of 8.375 percent senior secured notes due 2031 in an aggregate principal amount of $2.25 billion." The senior secured notes are affiliated with Venture Global and not any particular LNG terminal.[27]
In October and November 2023, Venture Global closed US$4 billion and US$1 billion in senior notes offerings, respectively.[28][29]
Articles and resources
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Maya Weber & Harry Weber, Venture Global seeks to enter early FERC review for another US LNG terminal, S&P Global, Jan. 25, 2021
- ↑ Venture Global CP2 LNG, LLC - FE Dkt. No. - 21-131-LNG. U.S. Department of Energy. May 4, 2022.
- ↑ "CP2 LNG • Venture Global LNG". Venture Global LNG. Retrieved 2022-05-17.
- ↑ 4.0 4.1 Adnan Bajic, Venture Global asks to start pre-filing for its fourth LNG project, Offshore Energy, Jan. 26, 2021
- ↑ Ellie Holbrook, Venture Global plans CCS project for LNG facilities, Argus Media, May 27, 2021
- ↑ 6.0 6.1 LNG Prime Staff (2023-07-31). "Venture Global LNG "on track" to start CP2 LNG construction this year". LNG Prime. Retrieved 2023-09-01.
- ↑ Venture Global LNG. "Venture Global and Louisiana Governor John Bel Edwards Announce Proposed CP2 LNG Export Facility". www.prnewswire.com. Retrieved 2023-01-09.
- ↑ Latham & Watkins LLP. Attention: Venture Global CP2 LNG, LLC FE Docket No. 21-131-LNG Order No. 4812, Order Condition H – Semi-annual Progress Report. March 31, 2023.
- ↑ "eLibrary". elibrary.ferc.gov. Retrieved 2021-12-02.
- ↑ "POLITICO Pro: FERC suspends environmental review of pipeline, LNG terminal". subscriber.politicopro.com. Retrieved 2022-07-07.
- ↑ 11.0 11.1 Reuters (reported from the New York Times). White House pauses decision on Louisiana LNG export terminal -New York Times. January 24, 2024.
- ↑ Stewart, Robert (2024-03-18). "Venture Global still eyeing 2026 for CP2 LNG start-up despite Biden pause". upstreamonline.com. Retrieved 2024-05-22.
- ↑ Stewart, Robert (2024-03-19). "Amid US LNG pause, Venture Global still spending $4 billion on CP2 this year". upstreamonline.com. Retrieved 2024-05-22.
- ↑ "FERC Chairman Attributes CP2 LNG Delays to Project's Potential Emissions". Natural Gas Intelligence. 2024-05-21. Retrieved 2024-05-22.
- ↑ LNG Global. Venture Global LNG Sales and Purchase Agreements with New Fortress Energy. March 16, 2022.
- ↑ "Venture Global inks long-term LNG sale and purchase deals with ExxonMobil". Offshore Energy. 2022-05-11. Retrieved 2022-05-11.
- ↑ Chevron Taps Into LNG Boom With Cheniere, Venture Global Deals. U.S. News & World Report. June 22, 2022.
- ↑ News, Bloomberg (2022-06-21). "German Utility Signs Long-Term Deal to Buy LNG From the US - BNN Bloomberg". BNN. Retrieved 2022-07-07.
{{cite web}}:|last=has generic name (help) - ↑ "Venture Global LNG signs 20-year contract with German energy firm". Reuters. Retrieved 2023-09-01.
- ↑ Cision PR Newswire. VENTURE GLOBAL AND INPEX ANNOUNCE LNG SALES AND PURCHASE AGREEMENT. December 26, 2022.
- ↑ LNG Prime Staff (2023-02-24). "Venture Global seals LNG SPAs with China Gas". LNG Prime. Retrieved 2023-08-24.
- ↑ LNG Global. Venture Global LNG Signs 20-Year Sale and Purchase Agreement with JERA. April 28, 2023.
- ↑ LNG Prime Staff (2023-05-10). "Worley, Venture Global ink CP2 LNG deal". LNG Prime. Retrieved 2023-09-01.
- ↑ Latham & Watkins LLP. Venture Global LNG, Inc. Notification of Change in Ownership Structure. October 24, 2023.
- ↑ Staff, LNG Prime (2024-06-27). "FERC approves Venture Global's CP2 LNG project". LNG Prime. Retrieved 2024-07-03.
- ↑ Politico. Federal judge blocks Biden’s pause on LNG export permits. July 1, 2024.
- ↑ LNG Prime Staff (2023-05-29). "Venture Global LNG wraps up $4.5 billion senior notes offering". LNG Prime. Retrieved 2023-09-06.
- ↑ Staff, LNG Prime (2023-10-25). "Venture Global LNG completes $4 billion senior notes offering". LNG Prime. Retrieved 2024-07-08.
- ↑ Staff, LNG Prime (2023-11-09). "Venture Global LNG wraps up $1 billion senior notes offering". LNG Prime. Retrieved 2024-07-08.
