U.S.-based LNG producer Venture Global has reached a final investment decision (FID) on its Calcasieu Pass 2 (CP2) LNG project in Louisiana, paving the way for construction and potentially triggering a wave of LNG carrier orders — with Korean shipbuilders expected to secure most of them.
On July 28, Venture Global announced it had secured $15.1 billion in project financing for Phase 1 of the CP2 development, marking the largest standalone project financing in LNG industry history. The funding will support the construction of the CP2 export facility and the associated CP Express Pipeline.
This follows the company’s previous financing of $13.2 billion for its Plaquemines LNG project and related Gator Express Pipeline. The CP2 project is projected to have an annual export capacity of 28 million metric tons (MTPA), making it the largest single LNG export terminal in the U.S. once completed.
Construction is expected to begin soon, with commercial operations targeted for 2027. The project has already received construction and environmental approval from the Federal Energy Regulatory Commission (FERC), as well as export authorization from the U.S. Department of Energy to supply LNG to non-FTA countries.
The FID is also in line with a U.S.-EU trade agreement signed during the Trump administration, under which the European Union committed to purchasing $750 billion worth of American energy products over three years.
With financing in place, Venture Global is expected to place orders for between six and twelve LNG carriers. The company has requested bids from shipyards in Korea, Japan, and China, with industry sources indicating that Korean shipbuilders are leading contenders due to their strong track record and existing relationship with the company.
Sources familiar with the negotiations say Venture Global initially requested quotes for three firm vessels and three options, with the possibility of expanding the order to four firm vessels and four options. Another scenario involves securing four initial slots, followed by eight optional vessels.
Korean shipyards are widely expected to win the bulk of the orders. Venture Global already has nine LNG carriers under construction at Korean yards.
Each of the new LNG carriers is expected to have a capacity of 174,000 cubic meters and an estimated unit cost of $250 million. A six-vessel order would total approximately $1.5 billion, while twelve vessels could push the value to around $3 billion.
“This is our third greenfield FID in just six years, and we’re proud to launch one of the most advanced LNG projects ever,” said Mike Sabel, CEO and co-founder of Venture Global. “CP2 will supply reliable American LNG to global markets beginning in 2027.”
