Prospects for Venture Global’s (VG) next LNG project improved Feb. 7 following the publication of a Federal Energy Regulatory Commission (FERC) draft environmental report responding to an earlier court ruling.

While not a final approval, the document is a necessary step towards garnering federal permits to move forward with the Calcasieu Pass 2 (CP2) LNG project, Venture Global’s 10 million metric tons per annum (mtpa) facility near Cameron, Louisiana.

In June 2024, the FERC approved the permits required to begin construction. Three months later, a coalition of environmentalists and fishermen filed a petition with the Court of Appeals, D.C. Circuit, to vacate the permits. The court later asked for a further environmental review of the project, which the FERC released on Feb. 7.

In several rulings over 2024, the D.C. court vacated or demanded further study of several LNG or petrochemical transfer projects.

For CP2, the court asked for further study on the impact on the local environment, including the overall effect on climate change.

The FERC staff’s answer on Feb. 7 affirmed the findings of the original environmental impact statement (EIS) that the agency released in 2023.

“We do not recommend any additional or modified mitigation measures be attached as conditions to the further merits order to be issued by the Commission,” the report said, stating that the project should be permitted.

The 75-page report is a draft and will go through a public comment period that ends March 31, according to the document.

Venture Global held an IPO on Jan. 27, with an opening price of $22.25 a share. Venture Global’s price had fallen to a low of $16.16 during early trading on Feb. 7, but the stock rose above $17 following the FERC report’s release.

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