Venture Global LNG's Calcasieu Pass 2 project gets final U.S. environmental nod
HOUSTON, July 28 (Reuters) — Venture Global LNG’s proposed Calcasieu Pass 2 (CP2) project in Louisiana on Friday received the U.S. Federal Energy Regulatory Commission’s (FERC) environmental approval, clearing the way for a final vote by the commission on expanding the company’s natural gas liquefaction facility.
CP2 was the first U.S. liquefied natural gas (LNG) project in 2023 to receive a final investment decision as the country seeks to expand exports of the super-chilled gas to meet growing global demand.
FERC said the potential impacts of the project would not significantly affect local resources, adding that the commission had developed specific mitigation measures for the construction and operation of the project.
Implementation of mitigation measures would avoid or reduce the impact of CP2 and CP Express, of a proposed connecting natural gas pipeline from Texas to the LNG facility, the regulator said in its environmental impact statement.
The construction and operation of the project would increase the atmospheric concentration of greenhouse gases, but the FERC said it would not classify it as “significant or insignificant” and instead would made several recommendations to reduce its effects.
Venture Global said the decision puts the company on track for a commission vote and commencement of construction later this year.
About 9.25 million tonnes per annum (mtpa) of CP2’s 20 mtpa nameplate capacity have been sold under 20-year sales and purchase agreements, with discussions ongoing for the remaining capacity, the company said its statement.
CP2’s LNG customers include oil majors ExxonMobil, Chevron and Japan’s top liquefied natural gas buyer JERA among others, the company added.
(Reporting by Curtis Williams in Houston; editing by Diane Craft and Leslie Adler)
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.