Venture Global LNG Meets High Demand by Investing Big in Louisiana
Company has invested more than $30 billion in LNG production and export facilities and carbon reduction technology
Louisiana continues to establish itself as a leader in the energy transition and the energy industry as a whole, as evidenced by three recent multi-billion dollar investments from Venture Global LNG.
Headquartered in Arlington, Virginia, Venture Global LNG is a worldwide provider of U.S. natural gas exports. The company has invested more than $30 billion and created more than 500 direct jobs in Louisiana since it unveiled its $4.25 billion plan for the first Cameron Parish LNG project eight years ago. CP1 shipped its first LNG export in March and expects to be operating at full capacity in 2023.
VG announced in 2016 it would build a second Louisiana LNG facility in Plaquemines Parish. When the final investment decision was announced in May 2022, the original $8.4 capital investment projection had increased to $13.2 billion (+47%). It was described by the company at the time as the “largest project financing transaction in the world to close in 2022.” First LNG is expected in 2024.
The company announced in later 2021 that it will invest more than $10 billion in a second LNG facility in Cameron Parish, named CP2, that will employ carbon capture and sequestration technology (CCS) in an effort to reduce carbon emissions. The CP2 LNG project is actively selling contracts and on pace to begin operations in 2027.
Once defined narrowly as an “oil and gas state,” Louisiana under Gov. John Bel Edwards has adopted an “all-of-the-above” approach to energy sector development. The strategy balances continuing state support for legacy energy investments with an aggressive pursuit of clean energy and emissions-reduction projects. The result has been rapid expansion and diversification, as illustrated by the Venture Global deal: a long-term investment that meets global demand for LNG while also incorporating carbon capture and sequestration technology that reduces greenhouse gas emissions and contributes to the state’s decarbonization of industry. By becoming an early adopter of this nuanced approach, Louisiana has remained firmly established as a Top 10 oil and Top 5 natural gas producer while establishing itself as a leader in the global transition to clean energy.
With this latest project, it is estimated Venture Global will put more than $2 billion directly into the local economy of Cameron Parish through taxes and job creation over a 10-year span. The direct jobs created by the company will earn an average annual salary of $122,400, plus benefits.
For Venture Global, selecting the location for its next LNG facility came as an easy decision. Having worked closely with the state on past projects, available incentive programs and feasible certified sites were just a few reasons the company continues to do business in Louisiana.
“Venture Global is on a mission to produce the cleanest low-cost LNG in North America. We are proud to partner with Louisiana in these efforts and in developing carbon capture and sequestration for our facilities. Under the leadership of Governor John Bel Edwards, Louisiana is enhancing its status as an international hub for innovation to tackle the energy and climate challenges of our time.”
Michael Sabel, CEO, Executive Co-Chairman and Founder - Venture Global LNG
The site selected is located on 650 acres in Cameron, including 170 acres on Monkey Island, providing CP2 with direct access to the deep-water Calcasieu Ship Channel. This location gives the facility prime access to export LNG worldwide.