Venture Global LNG Presses Regulators to Approve CP2 LNG Project

(Reuters) — U.S. liquefied natural gas (LNG) developer Venture Global LNG on Thursday asked federal regulators to approve construction of its controversial Calcasieu Pass 2 export plant at their meeting next month.

The plant has drawn the ire of environmentalists opposed to further U.S. gas expansion. The CP2 facility needs separate U.S. approvals for construction and for exporting fuel to countries that do not have free trade agreements with the United States, so called non-FTA countries that are the biggest buyers of U.S. LNG.

The Biden administration put a pause on future LNG export permits pending a review of its economic and environmental implications.

"We respectfully urge the Commission to issue an order authorizing the Project no later than the Commission’s next open meeting on March 21," Venture Global wrote to the Federal Energy Regulatory Commission (FERC).

The LNG developer said it made significant financial commitments to its customers, vendors and suppliers including $2 billion for equipment and over $300 million in construction and engineering work.

With offtake agreements for about half its processing capacity committed by companies including Japan's JERA, Germany's SEFE and EnBW, Exxon Mobil, Chevron and others, Venture Global said it has the commercial backing to move CP2 project forward.

Venture Global LNG's first project has been in an ongoing battle with long-term contract customers over a drawn-out commissioning that customers argue has cost them billions of dollars in lost sales.

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