Worley shares rally as Venture Global secures financing for LNG project

The news: Worley was one of the best performers on the ASX 200 in early trade after US-based LNG company Venture Global secured a final investment decision (FID) on its CP2 project, allowing the Australian engineering group to proceed with its multi-billion dollar engineering, procurement and construction contract.

The numbers: Worley shares were up 3% to $13.66 at 11am AEST.

The company can formally commence on the contract of works after Venture Global closed a USD15.1 billion ($23.2 billion) financing for the first phase of the project, that will feed the flow of US natural gas exports to Europe.

The context: RBC Capital Markets analyst Gordon Ramsay said Worley's "material multi-year contract" will allow the company to transfer the work from its sales pipelines to its backlog, which will become revenue over the period of the project work.

However, Ramsay said he does not envisage Worley moving into "full construction mode" until the end of 2026.