In a significant development for the liquefied natural gas (LNG) industry, the US Federal Energy Regulatory Commission (FERC) has given the green light to Venture Global LNG for its proposed CP2 LNG project in Louisiana. The approval, granted by a 2-1 decision during a meeting on June 21, marks progress for the long-awaited project.

The CP2 LNG project, Venture Global's third LNG export terminal, received a final environmental impact statement from FERC in July last year. Venture Global had repeatedly urged the regulator to expedite the project, emphasizing its standing as one of the longest-pending cases before the Commission.

The CP2 LNG plant, which will be located adjacent to Venture Global's Calcasieu Pass liquefaction plant in Louisiana, is still in the commissioning phase. It is set to feature 18 liquefaction blocks, each with a capacity of approximately 1.1 million tonnes per annum (mtpa) of LNG, and four 200,000-cbm full containment LNG storage tanks.

To proceed, the CP2 LNG project also requires non-FTA export authorization from the US Department of Energy. However, the Biden administration announced in January that it would temporarily pause decisions regarding LNG export terminals. The pause is intended to allow the DOE to update the underlying analyses for authorizations, including those for non-Free Trade Agreement (FTA) countries.

Notwithstanding this delay, Venture Global has made substantial progress on the CP2 LNG project. The company has already commenced off-site construction and invested billions of dollars in the venture. Venture Global anticipates that the first LNG from CP2 will be available in 2026, provided that the federal government approves the project without further delay.

Recent developments have added to the positive momentum for Venture Global. The company recently signed a heads of agreement with a unit of Ukraine's DTEK to supply LNG to Ukraine and Eastern Europe. The agreement stipulates that D.Trading will purchase up to 2 mtpa of LNG from Venture Global's CP2 LNG facility for a duration of 20 years.

Venture Global has secured significant sales and purchase agreements for the initial phase of CP2 LNG. ExxonMobil, Chevron, Jera, New Fortress Energy, Inpex, China Gas, SEFE, and EnBW have all entered into 20-year contracts with the company. Furthermore, the Australian engineering firm, Worley, has been awarded an engineering, procurement, and construction (EPC) contract for the first phase of the LNG project.

Following the FERC approval, Venture Global expressed its appreciation for the Commission's decision. Mike Sabel, CEO of Venture Global, commended FERC for their independent and thorough review of CP2 LNG. The company now looks forward to a swift non-FTA approval from the US Department of Energy, recognizing the project's significance for both global and national security.

The approval of Venture Global's CP2 LNG project marks a significant milestone for the LNG industry, signaling progress in expanding the US export capacity and supporting global energy supply.