Developers of a proposed LNG export terminal in Plaquemines Parish have hired an investment bank to raise up to $4 billion in capital to finance the project.
The company has hired Whitehall & Company to raise capital and secure offtake for the development and construction of a 6 million tons-per-year expert terminal project.
This marks round two at the site for Pointe LNG founders Tom Burgess and Jim Lindsay. The pair originally started an LNG development on the site under the name of Louisiana LNG Energy, which they sold in 2015 to a joint venture between Cheniere and Parallax. When internal disputes prevented those two companies from completing the project, Pointe LNG resumed development under the new name.
According to a recent announcement from the company, the project will be “the lowest-cost greenfield LNG project built in the U.S.” Point LNG is estimating it will come together at less than $600 per ton, given gas supply with less than 7 miles of pipeline buildout to connect to two major haul gas pipelines: TGPL and SONAT. Also reducing expenses, according to Pointe LNG: a stable foundation that requires no dredging or soil remediation and minimal wetlands mitigation costs.
The 600-acre site along the Mississippi River six hours away from open water comprises more than 9,200 feet of riverfront, providing expansion opportunities to 12 million tons per year or more. Water depth at the marine terminal and deepwater port is more than 50 feet, accommodating the 270,000 m3 Q-Max LNG carriers—the largest in the world. With more tan 2,000 feet of river width, the site allows two-way water traffic and eliminates the need for tug escort. The site is also protected from flooding by 17-foot levees on all sides maintained by the U.S. Army Corps of Engineers, according the Pointe LNG.
Financial close of the development capital portion of the transaction is targeted for Q3 2020, with final investment decision expected in mid-2020 and commercial operation by 2026.