US gives the go-ahead for Venture Global’s proposed $28 billion LNG export project in Louisiana

As the United States (U.S.) continues its shift away from the Biden administration’s green agenda, embracing fossil fuels to bolster its economy under the Trump administration in pursuit of American energy dominance, the U.S. Secretary of Energy has now given its blessing for a proposed multibillion-dollar liquefied natural gas (LNG) export project in Louisiana, operated by Venture Global, an American producer of LNG sourced from North American basins. 

This authorization from Chris Wright, U.S. Secretary of Energy, conditionally grants Venture Global authorization to export LNG to non-free trade agreement (non-FTA) countries from the proposed CP2 LNG project, as the Department of Energy (DOE) concluded that LNG exports from CP2 LNG would likely yield economic benefits to the United States, diversify global LNG supplies, and improve energy security for U.S. allies and trading partners during the export term through 2050.

The green light for this LNG project in Cameron Parish, Louisiana, is said to reflect another step in the Trump administration’s commitment to restoring American energy dominance. As a result, DOE expects to issue a final order to CP2 LNG in the coming months, enabling the giant undertaking, with construction costs of potentially $28 billion, to export up to 3.96 billion cubic feet per day (bcf/d) of LNG, leading to around 20 million tons of LNG annually once Venture Global takes a final investment decision (FID) to build this enormous LNG terminal and brings it to life.

Secretary Wright highlighted: “The benefits of expanding U.S. LNG exports have never been more clear, and I am proud to be taking action to support the American people and our allies abroad with more affordable, reliable, secure American energy. Thanks to President Trump’s leadership, we are cutting the red tape around projects like CP2, unleashing our energy potential and ensuring U.S. can continue to meet growing energy demand for decades to come.”

The decision to give the thumbs-up for CP2 LNG marks the fifth LNG-related approval from DOE since President Trump took office, following an export approval to Commonwealth LNG on February 14, an order on rehearing removing barriers for the use of LNG as bunkering fuel announced on February 28, an approval providing the Golden Pass LNG terminal more time to begin exports from March 5, and an approval granting the Delfin LNG project additional time to start exports issued on March 10.

Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, underlined: “The CP2 project is another project that has been waiting too long for regulatory action at DOE, and I am glad to see that being corrected today. With Venture Global’s track record of getting projects constructed quickly, I look forward to seeing this project come to fruition before long.”

The 20-mtpa CP2 LNG terminal will be situated on an approximately 1,150-acre site in Cameron Parish, with the proposed CP Express pipeline set to originate in Jasper and Newton County, Texas, before it ends at the CP2 LNG terminal in Cameron Parish, where it will feed natural gas to the proposed LNG facility. The associated marine facility will be located on Monkey Island, between the Calcasieu Ship Channel and Calcasieu Pass.

Furthermore, CP2 is Venture Global’s third LNG export project, with the Calcasieu Pass project coming online in March 2022 and the Plaquemines LNG project beginning exports in late 2024. Under the new administration, the U.S. is pushing for an ‘all-of-the-above’ energy policy to enable fossil fuels to coexist side-by-side with renewables and other low-carbon and clean sources of supply.

However, the energy bonanza seems to not extend to offshore wind, as U.S. President Donald Trump decided to hit the brakes on this fast-growing green power source for the time being. An increase in natural gas pipelines across the U.S. accompanies the build-out of LNG export terminals with approximately 8.5 bcf/d of pipeline additions for delivery to LNG export terminals recently completed in Texas and Louisiana.

Thanks to the expected LNG boom, America seems poised to reach a $1.3 trillion gross domestic product (GDP) estimate disclosed in a study made by S&P Global, which underlines that U.S. LNG export capacity is anticipated to double.

Therefore, the study notes that future activity will probably generate over $2.5 trillion in total business revenues, $166 billion in federal and state tax revenues, and more than $500 billion in labor income.