Venture Global to proceed with second phase of CP2 LNG project

By Curtis Williams

March 13 (Reuters) - Venture Global VG.N will proceed with phase 2 of its CP2 liquefied natural gas project in Louisiana, the company said on Friday.

The U.S.' second-largest LNG supplier said the project is strategically important to global energy supply and security.

LNG prices have been elevated since Qatar, which produces 20% of the world's LNG, shut down its LNG facility due to the ongoing war between the U.S./Israel and Iran.

Gas traded near $17 per million British thermal units at the Dutch Title Transfer Facility TRNLTTFMc1 benchmark in Europe and $16 at the Japan-Korea Marker JKMc1 benchmark in Asia. NG/EU

CP2 will have a peak production capacity of 29 million metric tons per annum and has contracted to sell nearly all of its LNG on a long-term basis with customers mainly in Europe and Asia, the company said on Friday.

Venture Global said it raised $8.6 billion in project financing for phase 2, having already secured $34 billion for phase 1, and did not require any equity investment.

CP2 is Venture Global's third LNG project and the company has moved in five years from a startup to a total contracted capacity of 49 MTPA.