Commonwealth LNG received a key analysis from federal regulators, indicating that the proposed plant near Cameron Parish, Louisiana, is near a final OK from the government.

The Federal Energy Regulatory Commission (FERC) issued the final supplemental environmental impact statement (SEIS) for Commonwealth LNG on May 16. The FERC’s next step is to issue an order permitting the project forward.

The FERC’s original schedule was to issue the order in the middle of the summer. In April, however, Commonwealth LNG asked for an expedited release for June. The subsequent publishing of the SEIS in May could indicate that the project’s schedule has sped up.

“We thank FERC for their tireless work and diligence in issuing this final SEIS, and we continue to be pleased and encouraged with the tremendous momentum we’ve achieved this month as our project advances toward scheduled FID,” said Commonwealth LNG President and CEO Farhad Ahrabi in an email to Hart Energy.

A court ordered the FERC to write the SEIS in a ruling issued in July 2024. Environmental groups protested an earlier FERC approval of the project. The case went before the Court of Appeals, D.C. Circuit, for review. The subsequent ruling charged the FERC with failure to properly assess the cumulative effects of the project’s nitrogen dioxide emissions.

In the SEIS executive summary, the FERC said while the emissions from the plant would be significant, the effects would be minimal.

“We do not recommend any additional or modified mitigation measures be attached as conditions to any order on remand issued by the Commission in this proceeding,” the report said.

Tom Sharp, director of permitting intelligence for Arbo, said the D.C. appeals court will not review the FERC’s order unless opponents issue another challenge.

Commonwealth LNG is a proposed 9.5-million tonnes per year (mtpa) facility on the Calcasieu Ship Channel. The company, owned by Kimmeridge, plans to reach a final investment decision and begin construction before the fourth quarter of 2025. Production is scheduled to begin in 2029.

Commonwealth has continued to develop the project while it remains in legal limbo. On May 5, the company announced a 20-year, 1-mtpa purchase agreement with an unnamed Asian buyer. On May 20, commodities buyer Glencore announced it had finalized a 20-year, 2-mtpa deal with Commonwealth.

Comments