Liquefaction developer and shipowner Venture Global has been given the go-ahead from US regulators to move forward with the construction of its proposed 28-million tonne per annum CP2 LNG plant
Liquefaction developer and shipowner Venture Global has been given the go-ahead from US regulators to move forward with the construction of its proposed 28-million tonne per annum CP2 LNG plant in Louisiana.
CP2 had already secured approval from the US Federal Energy Regulatory Commission, but after a court ruling, FERC carried out an additional environmental review on the project’s impact on air quality.
This study has concluded that the LNG plant should be allowed to move forward.
If constructed as planned CP2 would become the single largest LNG export plant in the US.
It would also transform New York Stock Exchange-listed Venture Global into the largest LNG producer in the US.
The company is already producing LNG from two plants — the 10-mtpa Calcasieu Pass LNG, which started commercial operations in April, and its 20-mtpa Placquemines LNG that is still ramping up.
In March the company, which controls a fleet of at least 11 LNG carriers and has been seen in talks with shipbuilders this year about additional newbuildings, announced a planned 18.6-mtpa expansion of Placquemines.
Together these developments would give the company over 76-mtpa of liquefaction capacity.
Two months ago Venture Global said it was starting the process that would move it towards a final investment decision on CP2.
With the conclusion of the study, company chief executive Mike Sabel said: “Venture Global applauds the Commission and FERC staff for their continued work to advance critical US energy projects like CP2 LNG.”
Sabel added: “With all federal approvals now in hand we look forward to immediately launching on-site construction on this project that will deliver reliable low-cost US LNG to the world, starting in 2027.”
The company has said previously that it anticipated taking a final investment decision on Phase 1 of CP2 by the middle of 2025.
Earlier this month Sabel estimated that around 550 cargoes would be produced during CP2 commissioning phases and anticipates it starting “on pace”, possibly quicker than the company’s previous two projects.
Venture Global has raised hackles among its LNG offtakers, with some taking legal action, for its drawn-out commissioning processes, which left buyers waiting for their contracted volumes.
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