The project was initially scheduled to come online in 2025. At peak capacity, the plant will be able to transport 24 MMmt/y. (Source: Shutterstock/ Venture Global)
The Federal Energy Regulatory Commission (FERC) has approved Venture Global’s Calcasieu Pass 2 LNG (CP2) project in a 2-1 vote at its June 27 meeting, leaving the Department of Energy’s (DOE) permit process as the last government hurdle before moving forward.
“Venture Global applauds the Commission and FERC staff for their independent and thorough review and approval of CP2 LNG,” Venture Global LNG CEO Mike Sabel said in a statement after the meeting. “We look forward to a swift non-FTA (Free-Trade Agreement) approval from the U.S. Department of Energy for this project that is critical to both global and national security.”
The CP2 decision was previously delayed because of changes at the overall site and within U.S. environmental law, said FERC Chairman Willie Phillips said in a press conference following the vote.
Earlier in the year, Venture Global sought permission from the state of Louisiana to increase particulate emissions from its Calcasieu Pass 1 LNG site, which FERC had to consider with CP2’s application, Phillips said. Also, the U.S. Environmental Protection Agency changed its air particulate standards in February, leading FERC to re-engage with Venture Global to ensure the CP2 project followed the new standards.
“When it comes to LNG terminals, they are among the most difficult tasks and matters that come before the commission,” Phillips said.
The project requires both FERC and DOE permits. Over the last few months, Venture Global has publicly urged FERC to quickly approve CP2 and criticized the time it took for the board to reach a decision.
CP2 was one of the biggest projects hit by the Biden Administration’s pause in January on non-FTA permit approval for new LNG export facilities. A non-FTA permit is required for export, as the majority of LNG producers sell to countries the U.S. does not have an FTA permit.
The project was initially scheduled to come online in 2025. At peak capacity, the plant will be able to transport 24 MMmt/y.
According to Venture Global’s statement, the initial phase of CP2 has been financially paid for through 20-year purchase agreements with ExxonMobil, Chevron, JERA, New Fortress Energy and others.
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