Company has raised $8.6bn in project financing for the expansion.
WHAT: Venture Global has taken FID earlier than expected on phase 2 of its CP2 plant.
WHY: In addition to securing project financing, soaring gas prices from the conflict in the Middle East have given producers a windfall of cash.
WHAT NEXT: Phase Two adds another 10mn tonnes per year of production capacity and will make Venture Global the US’s biggest LNG exporter upon completion.
Venture Global (NYSE: VG) has taken a positive final investment decision (FID) on Phase 2 of its Calcasieu Pass 2 (CP2) plant, the company announced on March 13.
The decision comes early as the Arlington, Virginia-headquartered company had predicted last year in May when it received its environmental approval from federal regulators that it would be mid-2026 when it would take FID.
The project received construction approval from the Federal Energy Regulatory Commission (FERC) in June 2024.
Having raised $8.6bn in project financing for phase 2, Venture Global was able to give the green light to the expansion of the facility located in Cameron Parish, Louisiana situated along the Calcasieu Ship Channel.
That figure is in addition to the $34bn Venture Global raised for phase 1. The US’s second-largest LNG developer did not need any equity investment for the project.
Venture Global is in the midst of a windfall in cash as gas prices have soared during the conflict in the Middle East. The events have fattened the wallets of LNG producers and given a boost to the sector at a time when growing fears of an impending LNG glut existed.
With the Strait of Hormuz closed off by Iran threatening to attack vessels passing through it, around 20% of global LNG trade has been eliminated from the market with both Qatar and the United Arab Emirates unable to ship cargoes.
Qatar, which is the world’s second-largest LNG producer, declared force majeure on LNG deliveries earlier in March. US LNG exporters have been some of the biggest winners, while key competitor QatarEnergy has seen long-term damage done to its reputation as a reliable supplier.
Venture Global is currently building phase 1 of its CP2 project, which will have a production capacity of 14mn tonnes per year (tpy). Phase 2 will more than double production capacity to 29mn tpy.
The US firm has already secured buyers for almost all of its LNG on a long-term basis with purchasers in Europe as well as Asia.
Venture Global currently has a total contracted capacity of 49mn tpy, despite the company only exporting its first LNG cargo in 2022. Its meteoric rise has seen it soar to become the US’s second biggest LNG exporter with its Calcasieu Pass and Plaquemines facilities in operation.
The LNG upstart is set to takeover top spot from Chevron once CP2 is fully online.
The move to proceed with FID for phase 2 comes despite the company acknowledging skyrocketing costs. Earlier in March, the firm said it expects costs for the two phases of CP2 to soar by $4bn.
Originally forecast to cost between $28bn and $29.5bn, the facility is now looking at a 14% rise to a price tag of between $32.5bn and $33.5bn.
Rising costs have plagued the industry in North America as a result of increasing construction costs attributed to a lack of skilled labour in combination with inflation due to rising wages in the Gulf Coast.
Venture Global’s Plaquemines facility, which is also located in Louisiana, saw cost overruns surpass $2bn. Even greater challenges posed by soaring costs faced ExxonMobil and QatarEnergy’s joint project Golden Pass LNG and Energy Transfer’s Lake Charles LNG.
But despite rising construction costs, companies have pushed ahead with LNG projects as a number of energy firms remain incredibly bullish on the super-chilled fuel prospects, especially in the short-term as a bridge fuel.
The world’s largest LNG trader Shell (LON: Shel) predicts demand for the super-cooled gas will climb by 60% by 2040. BP (NYSE: BP) also forecast a rise in LNG trade to the end of the decade in its Energy Outlook.
Similarly, Venture Global has pressed ahead with ambitious expansion plans despite being an LNG upstart and facing a number of hurdles in the past two years.
In January 2025, the company scaled back the valuation it was seeking in its initial public offering (IPO) by about 41% after investors were hesitant in response to the firm’s previous plans for the listing. The company also stumbled on its debut on the New York Stock Exchange.
In June 2025, Venture Global pulled its application for the proposed Delta LNG terminal. And in October 2025, the company also lost an arbitration case against BP for failing to deliver contracted cargoes. The UK supermajor is seeking up to $6bn in damages.
Indeed, it has been a rollercoaster ride for Venture Global in the five years since it began exporting LNG cargoes. And once again, despite some setback, Venture Global is moving full steam ahead after taking FID on phase 2 of its third facility CP2.
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