While U.S. President Joe Biden’s administration hit the pause button on pending approvals of LNG exports to non-free trade agreement (non-FTA) countries for a review of the environmental and economic impacts to be undertaken, the LNG freeze was challenged in court. As a result, the preliminary injunction restored the status quo, requiring the resumption of pending LNG application evaluation on a case-by-case basis.
This court order did not stop the Department of Energy (DOE) from being able to update studies that evaluate the economic and environmental impacts of LNG exports. DOE said last year that FERC needed to complete the environmental reviews and issue final merits orders, and then the projects’ applications would be reviewed. In light of this, the FERC has prepared a draft supplemental EIS to address the November 27, 2024, order.
This is said to be related to arguments raised on rehearing to set aside prior order for the CP2 LNG and CP Express pipeline project, proposed by Venture Global CP2 LNG and Venture Global CP Express, as the rehearing order set aside the authorization order, in part, regarding the commission’s analysis of the cumulative air quality impacts specific to the project’s nitrogen dioxide (NO2) and particles with an aerodynamic diameter of less than or equal to 2.5 microns (PM2.5) emissions.
Since the move was made for the purpose of conducting additional environmental review in light of an opinion issued by the U.S. Court of Appeals for the District of Columbia Circuit, FERC’s draft supplemental EIS was prepared in compliance with the requirements of the National Environmental Policy Act (NEPA) to assess these issues as part of the commission’s consideration of a further merits order for the project.
Previously, CP2 LNG received a positive final environmental impact statement (FEIS) from the Federal Energy Regulatory Commission in July 2023. This terminal will be on Monkey Island between the Calcasieu Ship Channel and Calcasieu Pass. The CP Express pipeline will originate in Jasper County, Texas, and feed natural gas to the proposed LNG facility in Cameron Parish.
Venture Global is developing carbon capture and sequestration (CCS) projects at its LNG facilities to curb the carbon footprint from operations. While shedding more light on its plans, CP2 LNG states that the purpose of the proposed project is to liquefy, store, and export a nameplate liquefaction capacity of 20 million metric tons per annum (mtpa) of LNG, with approximately 28 mtpa capacity possible under optimal conditions, to overseas markets by ocean-going vessels.
On the other hand, CP Express explains that the purpose of the pipeline system of about 91 miles (146.45 kilometers) is to create the firm transportation capacity needed to transport 4 billion cubic feet per day of feed gas required for the proposed LNG export operations from natural gas supply points in east Texas and southwest Louisiana to the terminal facilities.
Therefore, CP2 LNG and CP Express seek authorization to construct, install, own, operate, and maintain LNG facilities in Cameron Parish, Louisiana, and pipeline facilities in Cameron and Calcasieu Parishes, Louisiana, and Jasper and Newton counties, Texas.
“Commission staff conclude that the emission impacts, including 1-hour NO2 and annual PM2.5 impacts from the Moss Lake Compressor Station and CP2 LNG Terminal, when combined with past, present, and reasonably foreseeable emissions within the regional air environment are not significant. As such, we conclude that there would be no significant cumulative air quality impacts,” emphasized FERC.
The draft supplemental EIS comment period is set to close on March 31, 2025. Several applications to export domestically sourced natural gas as LNG to non-FTA countries were still undergoing environmental review with federal agencies under the Biden administration.
Things changed under the new administration, as America is pushing for an ‘all-of-the-above’ energy policy to see fossil fuels coexist side-by-side with renewables and other low-carbon and clean sources of supply. However, this currently seems to not entail offshore wind, as U.S. President Donald Trump has decided to hit the brakes on this fast-growing green power source for the time being.
Since Trump has opted to restart the approvals process for LNG export projects for non-free trade agreement countries, Friends of the Earth and Public Citizen have pinpointed 14 multibillion-dollar projects likely to be on the LNG export menu. As a result of the expected LNG boom, America seems poised to reach the $1.3 trillion gross domestic product (GDP) estimate from a study made by S&P Global.
With U.S. LNG export capacity forecast to double, future activity will probably generate over $2.5 trillion in total revenues for businesses, $166 billion in federal and state tax revenues, and more than $500 billion in labor income, according to S&P Global.
