FERC approves Venture Global’s CP2 LNG plant, Transco’s Texas to Louisiana line

The Federal Energy Regulatory Commission (FERC) issued a certificate on June 27 that allows Venture Global LNG Inc. to move forward with its 20-millon tonne/year (tpy) Calcasieu Pass 2 (CP2) LNG plant in Cameron Parish, La.

The commission also approved the 91-mile CP Express project that will transport 4 bcfd of gas from supply points in east Texas and southwestern Louisiana to feed the plant. CP2 has a 10-year contract with CP Express for all the line’s firm capacity. The companies are both subsidiaries of Venture Global.

Increasing US LNG

The project has become a battleground over whether the US should add to its stable of LNG plants. The US is already the world’s biggest exporter of natural gas, and CP2 would increase daily US LNG shipments by about 20% from the current rate from existing projects.

Outgoing Commissioner Allison Clements dissented. She said the project would result in “enormous greenhouse gas emissions, equivalent to 1.8 million gas-fueled cars on the road each year.” The certificate is “not in the public interest,” Clements said during the meeting.

Despite FERC approval, CP2 still needs Department of Energy (DOE) authorization to export LNG to non-free trade agreement countries.

A decision could take months as the Biden administration in January suspended DOE’s reviews of LNG export authorizations until it could determine if additional plants—beyond those already in service, being constructed, or already approved—are necessary given the proposed projects’ environmental impacts (OGJ Online, Jan. 30, 2024).

Venture Global has pressed for FERC approval, expressing dissatisfaction in March when the regulator failed to put the project on its agenda. The company received a positive environmental impact statement for the project a year ago (OGJ Online, July 28, 2023).

Environmental advocates have fought to block the LNG plant, saying it conflicts with the Biden administration’s stated climate and environmental justice commitments.

In addition to CP2, Cameron Parish hosts an existing plant with one other under development. Environmentalists say the plant would hurt low-income residents and slow the shift from fossil fuels.

FERC Chairman Willie Phillips, in a press conference following the meeting, said project decisions require “a delicate balance,” especially when they relate to environmental justice matters. “But we have a duty to abide by the law,” he said. Once the operator files a complete application and “our review is final, we give these matters a vote.”

On questions about the environmental impacts of CP2, Phillips noted that “courts have said again and again that the commission’s approach to reviews is above and beyond” the analysis required by the National Environmental Policy Act [NEPA].”

Supporters say CP2 will bring thousands of jobs and economic revitalization to an area struggling after four hurricanes in the past two decades. They say the plant would reduce global greenhouse gas emissions by helping foreign countries switch from coal to cleaner natural gas.

Transco

Separately, FERC granted a certificate to Transcontinental Gas Pipe Line Co. (Transco) to construct and operate the Texas to Louisiana Pathway Project, a $91.8 million expansion project designed to provide 364,400 dekatherms/day of firm transportation service to EOG Resources Inc. 

The Texas to Louisiana Pathway Project will provide firm transportation service to EOG through a combination of the conversion of Transco’s IT feeder system to firm transportation service; the turnback of certain firm transportation services by Transco’s existing customers; and the addition of incremental firm transportation services made possible by the construction of a new compressor station, and modifications to existing compressor stations in Texas.

The project, fully subscribed by EOG under a 15-year agreement, involves construction in Fort Bend, Hardin, and Victoria counties, Texas.

The June meeting marks the first for newly confirmed Commissioner David Rosner, although he did not vote. Two other commissioners recently confirmed by the Senate– Judy Chung and Lindsay See—are expected to join the commission in the coming weeks (OGJ Online, Jun. 13, 2024).