Last July, FERC issued a final environmental impact statement for the CP2 LNG project. The project aims to complement Venture Global's existing Calcasieu Pass liquefaction plant, which is currently undergoing commissioning. The new facility will feature 18 liquefaction blocks, each capable of producing approximately 1.1 million tonnes per annum (mtpa) of liquefied natural gas (LNG), alongside four 200,000-cubic-meter full-container LNG storage tanks.
Venture Global has been vocal about the project’s prolonged review process, emphasizing its status as one of the lengthiest cases before the Commission. Recent actions, including significant off-site construction and substantial financial investments, highlighted the company’s urgency in pushing for approval.
Despite FERC’s approval, CP2 LNG awaits non-FTA export authorization from the US Department of Energy (DOE). The Biden administration’s temporary pause on such authorizations, pending updated analytical reviews, adds another layer of complexity to the project’s regulatory path.
Venture Global anticipates the first LNG deliveries from CP2 LNG by 2026, contingent upon timely federal approvals. The project’s initial phase has already secured long-term sales agreements with major energy players, underscoring its strategic importance in the global LNG market. Moreover, a recent agreement with Ukraine’s DTEK highlights Venture Global’s commitment to expanding LNG exports into Eastern Europe.
As construction progresses under the oversight of Australian engineering firm Worley, Venture Global remains actively engaged in discussions to finalize capacity allocations for the project. With billions already invested and momentum building, CP2 LNG represents a pivotal initiative in enhancing US LNG export capabilities while navigating complex regulatory landscapes.
This ambitious project, spearheaded by Venture Global, highlights the rapid expansion of LNG exports from the United States since 2016, positioning the nation as the world’s largest LNG exporter with about 20% of the global market share. Despite this economic achievement, critics argue that fossil fuel ventures are incompatible with a sustainable future. Robert Howarth, a prominent climate scientist at Cornell University, points out that LNG exports, including those from CP2, contribute significantly to greenhouse gas emissions, potentially nullifying progress in reducing emissions since 2005.
Concerns are exacerbated by Venture Global’s troubled track record at its nearby Calcasieu Pass facility, which has faced operational challenges, including equipment malfunctions, frequent flaring, and numerous environmental violations. Shreyas Vasudevan of the Louisiana Bucket Brigade warns that CP2 could magnify these issues due to its larger scale, posing heightened risks to the environment and nearby communities.
Resident Travis Dardar, a member of the United Houma Nation, reflects the community’s distress over CP2’s impacts. He describes how construction activities have disrupted local ecosystems, displaced wildlife, and compromised traditional fishing grounds. Residents like Dardar have been forced to accept buyouts and relocate due to concerns over safety and environmental degradation.
Critics argue that FERC’s environmental assessments fail to adequately consider the cumulative impacts of such projects on climate change and local communities, focusing narrowly on export-related impacts. For opponents like James Hiatt, a former oil and gas worker turned critic, the unchecked expansion of LNG facilities poses an existential threat to a region already grappling with the consequences of climate change and industrialization.
Oil Change International was one of the first groups to comment on the decision once it was announced, stating, "Make no mistake: CP2 is a carbon bomb threatening frontline communities with increased pollution and exacerbating the climate crisis. Expanding LNG infrastructure jeopardizes the health and safety of nearby communities, undermines efforts to reduce fossil fuel dependency, and drives the climate crisis, economic instability, and conflict."
