FERC Affirms Authorizations for Venture Global’s LNG Export Terminal and Pipeline

Troutman Pepper Locke
Contact

Troutman Pepper Locke

On May 23, 2025, FERC upheld on rehearing its prior orders authorizing Venture Global CP2 LNG, LLC to build a new liquified natural gas (“LNG”) export terminal (“CP2 LNG Terminal”) and granting Venture Global CP Express, LLC (together, with Venture Global CP2 LNG, LLC, “Venture Global”) a certificate of public convenience and necessity (“CPCN”) to construct and operate a new natural gas pipeline (“CP Express Pipeline,” together, with the CP2 LNG Terminal, the “Projects”) to connect the CP2 LNG Terminal to the existing natural gas pipeline grid (“May 23 Rehearing Order”). In its May 23 Rehearing Order, FERC continued to find that the Projects are environmentally acceptable actions and not inconsistent with the public interest.

The CP2 LNG Terminal would be located in southern Louisiana on the Gulf Coast and would consist of a liquefaction plant, LNG storage tanks, and two LNG loading docks. With a peak achievable capacity of 28 million metric tons per annum, the Terminal would be the largest LNG plant in the United States. The CP Express Pipeline would connect the Terminal with existing interstate natural gas pipelines to provide the Terminal with gas. FERC approved the Projects in June 2024 (“Authorization Order”).

A group of environmental organizations and individuals (“Petitioners”) subsequently requested rehearing of the Authorization Order. In relevant part, Petitioners argued that FERC violated the National Environmental Policy Act (“NEPA”) by failing to take a hard look at the air pollution impacts of the Projects. Specifically, Petitioners argued that FERC improperly relied on state agency data and data from an unrepresentative air monitoring station, incorrectly concluded that exceedances of National Ambient Air Quality Standards would occur even without the Projects, and that FERC improperly excluded reasonably foreseeable mobile sources such as LNG tankers from its air quality modeling.

In November 2024, FERC addressed Petitioners’ arguments on rehearing except for those relating to air quality claims (“2024 Rehearing Order”). In light of two recent D.C. Circuit opinions addressing FERC’s CAA analysis and the potential conflict with the Authorization Order, FERC set aside its air quality analysis in the Authorization Order, ordered supplemental environmental analyses, and explained that it would issue a separate merits order addressing air quality. Venture Global sought rehearing of the 2024 Rehearing Order.

FERC’s May 23 Rehearing Order addressed Petitioners’ original air quality claims and Venture Global’s request for rehearing of the 2024 Rehearing Order. Specifically, FERC addressed each of Petitioners’ various arguments regarding Venture Global’s air quality modeling and FERC’s evaluation of that modeling. Relying on both the initial EIS and supplemental EIS, FERC continued to accept the environmental recommendations in the Authorization Order. FERC found that the Projects, if implemented as described in the Project applications and in compliance with the environmental conditions included the Authorization Order, are environmentally acceptable actions and not inconsistent with the public interest.

The Projects have not received final approval from the Department of Energy, but FERC’s May 23 Rehearing Order clears a hurdle for the Projects.

FERC’s order, issued in Docket Nos. CP22-21-001, et al., can be found here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Troutman Pepper Locke

Written by:

Troutman Pepper Locke
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Troutman Pepper Locke on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide