The US Federal Energy Regulatory Commission (FERC) has given the green light to Venture Global’s Calcasieu Pass 2 (CP2) LNG project in Louisiana, despite objections related to climate change.
The approval allows the construction and operation of the CP2 LNG plant and its associated 137km pipeline.
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The decision by FERC to approve the CP2 LNG project comes amid a broader discussion on natural gas exports and their impact on both local consumers and global climate change, according to Reuters.
Venture Global’s project is awaiting a separate permit from the Department of Energy for exporting the gas, reported Politico.
It is set to include 18 LNG blocks, four storage tanks and two marine docks.
Methane, a key component of natural gas, is known for its significant contribution to global warming when released into the atmosphere.
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By GlobalDataHowever, it remains a critical source of energy for electricity generation and heating in the US and other parts of the world.
The CP2 LNG terminal is expected to have a nameplate export capacity of 20 million tonnes per annum (mtpa), with the potential to reach around 24mtpa at its peak.
The proposed facility, which would be situated adjacent to the existing Calcasieu Pass LNG terminal in Cameron Parish, has become a contentious issue in the ongoing debate over fossil fuel reliance and energy infrastructure.
Environmental groups have expressed concerns that the project could lead to increased pollution and further global warming.
Despite these concerns, Venture Global has secured 20-year sales and purchase agreements with several major energy companies including ExxonMobil, Chevron and JERA.
The company has also signed a heads of agreement with DTEK of Ukraine and is in talks for the remaining capacity.
Meanwhile, substantial off-site construction work on the project has already commenced, the company said.
Venture Global CEO Mike Sabel said: “Venture Global applauds the Commission and FERC staff for their independent and thorough review and approval of CP2 LNG. This project will be critical to global energy security and supporting the energy transition, as well as provide jobs and economic growth across Louisiana and the US.”
