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FERC reaffirmed its previous approval of Venture Global’s CP2 LNG project and the project’s pipeline on Friday.
“With the issuance of this order, the rehearing requests in this proceeding are no longer pending, and the Commission has issued its full merits orders on rehearing, without changing the authorization for the projects. The authorization order remains in full force and effect, and no further withholding of construction authorizations is required,” FERC said.
Mike Sabel, CEO of Venture Global, said in a statement that the company “applauds the Commission and FERC staff for their continued work to advance critical US energy projects like CP2 LNG.”
“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,” he said.
On May 14, Sabel wrote a letter to FERC’s chairman Mark Christie to request that FERC issue its order as soon as possible reaffirming its authorizations for Venture Global CP2 LNG and Venture Global CP Express.
Sabel noted that Venture Global has already invested over $5 billion in the CP2 project, while it just recently announced commitments from 20 banks for a $3 billion loan facility to finance the on-going manufacturing, procurement, and engineering work.
$28 billion
The CP2 LNG plant will be located next to Venture Global’s existing Calcasieu Pass liquefaction plant in Louisiana, which started commercial operations in April.
CP2 is expected to have peak production capacity of up to 28 mtpa.
Venture Global estimates that the total project costs for the CP2 project, including both phases, will range from about $27 billion to $28 billion.
In March, Venture Global announced it had launched the formal FID process for CP2 LNG.
FERC recently also released a final supplemental environmental impact statement for the project.
The regulator concluded that there would be no significant cumulative air quality impacts from the project.
