Venture Global’s CP2 LNG Project Advances with Environmental Report
(Reuters) — U.S. liquefied natural gas (LNG) company Venture Global's proposed CP2 export plant in Louisiana moved a step closer to construction after U.S. Federal Energy Regulatory Commission staff released a draft environmental report on Friday.
The U.S. became the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar, as much higher global prices fed demand for more exports, due in part to new projects built by Venture Global and others, and supply disruptions and sanctions linked to Russia's 2022 invasion of Ukraine.
Shares of Venture Global, which hit an all-time low of $16.00 earlier in the session, were trading down about 4.0% to around $16.78 per share.
The shares, which have only been trading since Jan. 24, pared earlier losses since the release of the FERC news on CP2.
Earlier in the week, Reuters reported that TotalEnergiesTTEF.PA rejected opportunities to become a long-term customer of Venture Global's U.S. terminals because the French energy firm did not trust the U.S. LNG company due in part to disputes Venture Global was having with some of its customers.
In a filing on Friday, FERC said its staff prepared a draft supplement environmental impact statement to address FERC's Nov. 27 order addressing arguments raised about emissions from the plant.
After taking another look at the plant's expected air emissions, the FERC staff concluded in the current draft EIS that the project's emissions impacts "are not significant."
FERC said the draft supplemental EIS is not a decision document. "It presents Commission staff’s independent analysis of the environmental issues for the Commission to consider when addressing the merits of issues in this proceeding."
FERC asked those interested in commenting on the draft EIS to submit comments by March 31.
This environmental report is one step in a long process to get the LNG export plant approved and built.
In December 2021, Venture Global filed with FERC to build and operate CP2 and the related CP Express natural gas pipeline.
FERC staff issued the final EIS in July 2023 and FERC issued an order approving the project in June 2024. But in July 2024, a coalition filed for a rehearing and stay of the project approval due in part to air emission concerns.
FERC granted that rehearing in November 2024 so the Commission could take another look at air quality impacts from the plant.
Venture Global has about 100 million tonnes per annum (MTPA) of LNG export capacity in operation, construction or development in Louisiana, including the 10-MTPA Calcasieu (operation), 20-MTPA Plaquemines (operation and construction), 20-MTPA Delta (development), 20-MTPA CP2 (development) and 30-MTPA CP3 (development).
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