June 28, 2024 [LNG Prime]- The US FERC has given the green light to Venture Global LNG for its proposed CP2 LNG project in Louisiana.
In a 2-1 decision, FERC commissioners approved the project and the pipeline during a meeting on June 21 with commissioner Clements dissenting.
The regulator issued a final environmental impact statement for the CP2 LNG project, Venture Global’s third LNG export terminal, in July last year.
Venture Global urged the regulator several times to act on the project saying that it is one of the longest to ever sit before the Commission.
FERC’s meeting agenda showed last week that the regulator will vote on Venture Global CP2 LNG and Venture Global CP Express on June 27.
The CP2 LNG plant will be located next to Venture Global’s existing Calcasieu Pass liquefaction plant in Louisiana, which is still in the commissioning phase.
It will have 18 liquefaction blocks, each with a capacity of about 1.1 mtpa of LNG, and also four 200,000-cbm full containment LNG storage tanks.
Besides the FERC approval, CP2 LNG also needs the non-FTA export authorization from the US Department of Energy.
However, the Biden administration said in January it will “temporary pause” pending decisions for LNG export terminals.
The US paused pending decisions on exports of LNG to non-FTA countries until the DOE can update the underlying analyses for authorizations.
First phase sold out
Venture Global said it has launched off-site construction and spent billions of dollars on the project.
“First LNG is expected in 2026 should the federal government act without further delay to approve CP2,” it said in March.
Venture Global recently signed a heads of agreement with a unit of Ukraine’s DTEK to supply LNG to Ukraine and Eastern Europe.
The deal provides that D.Trading will purchase up to 2 mtpa of LNG from Venture Global’s third facility, CP2 LNG, for 20 years.
According to Venture Global, the initial phase of CP2 LNG has been sold through 20-year sales and purchase agreements with ExxonMobil, Chevron, Jera, New Fortress Energy, Inpex, China Gas, SEFE, and EnBW.
“Venture Global is in active discussions for the remaining capacity, and has launched significant off site construction of the project while it awaits project authorizations from US regulators,” it said.
Australian engineering firm Worley secured a reimbursable engineering, procurement, and construction (EPC) contract for the first phase of the LNG project.
Venture Global looks forward to a “swift” non-FTA approval
Following FERC’s approval, Venture Global issued a statement later on Thursday.
“Venture Global applauds the Commission and FERC staff for their independent and thorough review and approval of CP2 LNG,” said Mike Sabel, CEO of Venture Global.
“We look forward to a swift non-FTA approval from the US Department of Energy for this project that is critical to both global and national security,” he said.
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