Venture Global announces FID and financial close for Phase 1 of CP2 LNG
Venture Global, Inc. has announced a final investment decision (FID) and closing of the US$15.1 billion project financing for the first phase of the company’s third project, Venture Global CP2 LNG (CP2), together with the associated CP Express Pipeline. This milestone represents the largest standalone project financing ever, and the second largest project financing after the combined financings of Venture Global’s Plaquemines LNG. The transaction garnered interest from the world’s leading banks, resulting in over US$34 billion of commitments, and required no outside equity investment.
“We are extremely proud to have taken FID on our third greenfield project in under six years with over US$80 billion in capital markets transactions executed to date,” said Venture Global CEO, Mike Sabel. “This success would not be possible without the dedication and relentless execution of the entire Venture Global team. Our significant early investments and work on the project make CP2 the most advanced project at FID to date. This project, fully owned by Venture Global and our shareholders, is expected to deliver reliable American LNG to the world beginning in 2027.”
CP2 will have a peak production capacity of 28 million tpy. Phase 1 has contracted long-term SPAs with customers in Europe, Asia, and the rest of the world. Accordingly, CP2 is a strategically important project to global energy supply and security. Venture Global now has a total contracted capacity of 43.5 million tpy across all three of its projects in Louisiana.
The lender group for the construction financing is comprised of the world’s leading banks, signalling significant demand for US LNG investment not only in the US, but also in Europe and Asia. The lender group includes: Bank of America, Barclays, Bayern LB, BBVA, CIBC, Deutsche Bank, FirstBank, Flagstar, Goldman Sachs, Helaba, ICBC, ING, Intesa, J.P. Morgan, LBBW, Mizuho, MUFG, Natixis, NBC, Nord LB, Raymond James, RBC, Regions, Santander, Scotiabank, SMBC, Standard Chartered, Truist, and Wells Fargo.
ING and Santander served as Lead Arrangers for CP2 LNG Phase 1’s Construction Term Loan and Working Capital Facility, while Bank of America and Scotiabank served as Lead Arrangers for CP2 LNG Phase 1’s Equity Bridge Loan. Latham & Watkins LLP served as counsel to Venture Global and Skadden, Arps, Slate, Meagher & Flom LLP served as counsel to lenders across all facilities.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/29072025/venture-global-announces-fid-and-financial-close-for-phase-1-of-cp2-lng/
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