LNG Export Terminals Await Environmental Reviews as Trump Plans Energy Push

By Timothy Gardner

WASHINGTON, Dec 10 (Reuters) – The U.S. Department of Energy said on Tuesday it is not able to complete reviews of two planned liquefied natural gas export terminals in Louisiana until an independent regulatory body finishes its environmental assessments of the projects. 

The department said it has to wait for the Federal Energy Regulatory Commission, or FERC, to finish its work before it can review applications for LNG exports from the terminals to countries with which the U.S. does not have free trade agreements. The projects are Venture Global LNG’s CP2 20 million ton per annum facility and Commonwealth LNG’s planned 9.5 Mtpa facility, both located on the Gulf of Mexico.

“DOE cannot complete its review of these two applications – CP2 and Commonwealth – until after FERC’s completion of the environmental reviews and issuance of final merits orders,” the department said on its website.

Republican President-elect Donald Trump has said he would act to approve LNG projects early in his term, which starts on Jan. 20. Trump wrote on social media on Tuesday that any person or company investing at least $1 billion in the United States “will receive fully expedited approvals and permits, including, but in no way limited to, all environmental approvals.”

It was not clear how the incoming administration would push FERC and other independent commissions to approve projects.

The Department of Energy said its decision on Tuesday was “consistent with precedent” during the administration of Democratic President Joe Biden and the previous two administrations, including Trump’s prior one.

FERC last month pulled Venture Global’s authorization to construct CP2, requiring an additional environmental review of air quality impact. FERC has not disclosed exactly how long that review will take. A FERC representative did not immediately respond to a request for comment.

CP2 has been at the center of a fight with environmentalists seeking to limit future LNG projects on the U.S. Gulf Coast. The facility had won FERC construction approval in June.

The additional review follows an Aug. 6 decision by the U.S. Court of Appeals for the District of Columbia Circuit that quashed FERC’s approval of NextDecade’s plant at the Port of Brownsville, Texas, and ordered FERC to reconsider the project ramifications with a new environmental statement and public comment period.

Venture Global looks forward to Trump and Chris Wright, his pick for energy secretary, returning the Department of Energy to “regular order,” company spokesperson Shaylyn Hynes said.

“This will allow the American energy industry to continue building, creating jobs, and unleashing much needed U.S. LNG supply to our allies,” Hynes said.

FERC also put on hold its approval for the construction of Commonwealth LNG’s facility in Cameron. Commonwealth has said it is confident in its project and will be providing all requested input for the supplemental environmental impact statement.

(Reporting by Timothy Gardner; Editing by Will Dunham)

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