US Energy Department: Two LNG reviews must be waited for by regulator

The U.S. Department of Energy announced on Tuesday that it will not be able to finish its reviews of two proposed liquefied gas export terminals planned for Louisiana until an independent regulatory agency completes their environmental assessments of these projects.

The Department of Energy said that it must wait until the Federal Energy Regulatory Commission (FERC) has completed its work to review applications for exports of LNG from terminals to nations with whom the United States does not have a free trade agreement before it can evaluate the applications. Venture Global LNG’s CP2 facility of 20 million tons per year and Commonwealth LNG’s planned 9.5 Mtpa facilities, both on the Gulf of Mexico, are the projects.

The DOE stated on its website that it could not complete its review until FERC had completed its environmental reviews and issued final merits orders. Donald Trump, the Republican president-elect, has stated that he will approve LNG projects as soon as his term begins on January 20. Trump said on Twitter on Tuesday that anyone or any company investing $1 billion or more in the United States will receive "fully expedited approvals, permits, and environmental approvals, including but not limited to all environmental approvals."

The incoming administration had not made it clear how they would influence FERC or other independent commissions in order to approve projects. The Department of Energy stated that its decision was "consistent" with the precedent set during the administration of Democratic president Joe Biden, and in the two previous administrations including Trump's. FERC pulled Venture Global’s authorization last month to build CP2, requiring a further environmental assessment of air quality impacts. FERC did not specify how long the review would take. A FERC spokesperson did not respond immediately to a comment request.

CP2 is at the heart of a battle with environmentalists who want to limit future LNG project on the U.S. Gulf Coast. The facility was approved for construction by FERC in June.

The additional review is in response to a U.S. Court of Appeals decision from the District of Columbia Circuit dated August 6, which quashed FERC’s approval of NextDecade’s plant at Brownsville Port, Texas. It also ordered FERC reconsider the project ramifications, with a revised environmental statement and reopened public comment period. Venture Global is looking forward to Trump's pick of Chris Wright as energy secretary returning the Department of Energy back to "regular" order, said company spokesperson Shaylyn Hines.

Hynes stated that the U.S. LNG will be available to our allies and help them to meet their needs.

FERC has also suspended its approval of the Commonwealth LNG facility in Cameron. Commonwealth LNG has stated that it is confident about its project, and will provide all the requested input to the supplemental environmental assessment.

(source: Reuters)