February 18, 2025 [Gas Strategies]- Commonwealth LNG’s developers said they aim to reach final investment decision on the 9 mtpa facility in September, after the US government on Friday authorised their export to non-Free Trade Agreement countries.
The conditional authorisation, following an earlier draft Supplemental Environmental Impact Statement (SEIS) from the Federal Energy Regulatory Commission (FERC), marks the first export licence granted following the pause rolled out a year ago.
“With these decisions in hand, subject to a FERC Final Order, which we expect in July 2025, and DOE final authorisation, Commonwealth anticipates reaching a final investment decision in September 2025, with first LNG production expected in Q1 2029,” Commonwealth CEO Farhad Ahrabi said in a statement on 14 February.
Exports from the Louisiana facility have been approved for shipment to Asia and Europe, which were previously barred under the LNG pause to non-Free Trade Agreement countries under former President Joe Biden’s administration.
President Donald Trump lifted the pause on 20 January, when he was inaugurated for his second term in office.
Energy secretary Chris Wright noted the president’s “bold agenda for unleashing American energy dominance and restoring regular order” for US LNG permits, in comments released accompanying the notice.
“In the order, DOE finds that LNG exports from Commonwealth LNG are likely to yield economic benefits to the United States, diversify global LNG supplies, and improve energy security for US allies and trading partners over the course of the export term through 2050. DOE expects to issue a final order to Commonwealth LNG later this year,” the US Department of Energy said.
Current US LNG exports are expected to reach record highs in 2025, averaging over 15 Bcf/d, according to the US Energy Administration’s short-term energy outlook. These record export levels are accompanied by record highs in current US natural gas production of almost 105 Bcf/d, making the US the current lead exporter.
Ben Dell, managing partner of Kimmeridge Energy Management and chairman of Commonwealth, said the move advances the company’s commitment to developing a “state-of-the-art LNG export facility” which is expected to unlock ~USD 11 billion in investments in Louisiana and an estimated USD 3.5 billion in annual export revenue. He added that at the peak of the facility’s construction, more than 2,000 workers would be needed, with the project providing 270 high-paying jobs when operations begin.
Pause impacts
Other projects hampered by the pause included Energy Transfer’s Lake Charles facility and Venture Global’s Calcasieu Pass 2 (CP2).
The effects of the pause are still to be dealt with — a widely-criticised study published in December, which just stopped short of declaring US LNG to be inconsistent with the public interest, is still a matter for the US government to deal with.
But while the study has been criticised for being flawed and weak on several levels, legal energy experts noted that it has been published in a way that requires it to be addressed – and that also relates to each of the projects listed in a notice alongside the study – including Commonwealth LNG, Venture Global CP2 LNG, and Lake Charles, among others.
“The law requires that the authorisations be supported by a finding that they’re not inconsistent with the public interest, which means that the Department of Energy [DOE] has to engage the record in each case,” said Washington DC-based James Bowe, a partner specialising in environmental and energy matters at King & Spalding.
“The study has now been made a part of the administrative record in each of the cases that are identified and that means that in order for the DOE to act in those proceedings, it will have to address the study and comments on the study in each of those proceedings,” Bowe said.
Anybody else who has things to say about projects, will have to respond in those proceedings to the study and file comments in proceedings to the study, he noted.
“This is going to be on a case-by-case basis, regardless of whether the incoming administration likes it or not,” Bowe said.
The 60-day comment window — which kicked off at the study’s publication on 17 December, has been extended to 20 March. -PS
Free Trial: Access 13,300 Tank Terminal and Production Facilities
13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
