By Curtis Williams
HOUSTON (Reuters) -U.S. regulators have given Venture Global permission to proceed with construction of its CP2 liquefied natural gas (LNG) plant in Louisiana, a FERC document showed on Friday.
If constructed, CP2 will be the single largest LNG export facility in the U.S. and help the country remain the world’s largest exporter of the superchilled gas. It also could make Venture Global the largest U.S. LNG company.
The decision follows a final environmental study that shows the 28 million metric tons per annum plant is in the public interest.
Venture Global had obtained approval to construct the plant, but after a court ruling, FERC conducted an additional environmental review of the impact on air quality.
The study concluded that the project should be allowed to continue.
"Neither the presumptive stay ...nor the Commission’s regulations barring construction for a limited period pending rehearing will apply upon issuance of this order," federal regulators said.
With federal approvals in hand, the company will immediately launch on-site construction for the project, the company’s CEO Mike Sabel said on Friday.
The additional review followed an August 2024 decision from the U.S. Court of Appeals for the District of Columbia Circuit that quashed FERC approval of rival LNG exporter NextDecade (NASDAQ:NEXT)’s plant at the Port of Brownsville, Texas. In light of the court ruling, FERC decided to review the CP2 project’s impact on air quality.
CP2 has been at the center of a fight between the energy sector and environmentalists seeking to limit future LNG projects on the U.S. Gulf Coast.