Subject to the satisfaction of customary conditions precedent, the loan proceeds will be available immediately in full and will be used to finalize engineering work and commence site construction activity for the company’s 10 million tons per annum (MTPA) Calcasieu Pass export project upon receipt of regulatory approvals and prior to a formal FID.
Venture Global Co-CEOs Mike Sabel and Bob Pender jointly stated, “From the beginning, Morgan Stanley recognized our innovative strategy and exacting execution, and they have been a highly valued long-term partner to our team. This $220 million, along with the $635 million of equity capital we have raised to date, allows us to finalize advanced engineering, purchase equipment, and commence construction activities at our Calcasieu Pass facility in the near term, reducing schedule risk for our offtake customers.”
The 10 MTPA Calcasieu Pass facility will commence construction of the following the receipt of all required regulatory approvals, including the Final Order from the U.S. Federal Energy Regulatory Commission, which is currently scheduled to be issued no later than January 22, 2019. The project has executed binding 20-year offtake agreements with various partners including Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG.
Venture Global LNG is a long-term, low-cost provider of LNG from North American natural gas basins. It is developing both the 10 MTPA Venture Global Calcasieu Pass facility and the 20 MTPA Venture Global Plaquemines LNG facility, 30 miles south of New Orleans.