The US Department of Energy (DOE) has announced that the completion of reviews for two proposed LNG export terminals in Louisiana will be delayed pending environmental assessments by the Federal Energy Regulatory Commission (FERC).
The projects under scrutiny are Venture Global LNG’s CP2 facility with a capacity of 20 million tonnes per annum (mtpa) and Commonwealth LNG’s planned 9.5mtpa facility, both situated on the Gulf of Mexico.
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The DOE is required to wait for FERC to conclude its environmental assessments before it can process applications for LNG exports to countries with which the US does not have free trade agreements.
The department said: “DOE cannot complete its review of these two applications CP2 and Commonwealth until after FERC’s completion of the environmental reviews and issuance of final merits orders.”
President-elect Donald Trump, a Republican, has indicated his intention to expedite approvals for LNG projects early in his term, which begins on 20 January.
Trump has promised on social media that investments exceeding $1bn in the US will be met with fully expedited approvals, including environmental clearances.
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By GlobalDataHowever, it remains uncertain how his administration will influence FERC and other independent commissions to accelerate project approvals.
FERC’s recent actions have impacted Venture Global’s CP2 project, revoking its construction authorisation last month and calling for a further environmental review concerning air quality.
The timeline for this additional assessment has not been disclosed by FERC and a representative did not immediately respond to comment requests.
The CP2 project, which initially received FERC construction approval in June, has become a focal point for environmentalists opposed to new LNG projects on the US Gulf Coast.
The intensified scrutiny follows a 6 August decision by the US Court of Appeals for the District of Columbia Circuit that invalidated FERC’s approval of NextDecade’s facility at the Port of Brownsville, Texas, necessitating a fresh environmental statement and public commentary period.
Venture Global spokesperson Shaylyn Hynes expressed the company’s anticipation for the upcoming Trump administration, and for his nominee for energy secretary, Chris Wright, to restore the DOE to ‘regular order’.
FERC has also paused its approval for the construction of Commonwealth LNG’s Cameron facility.
Despite this setback, Commonwealth remains optimistic about the project and has committed to providing all necessary information for the supplemental environmental impact statement.
