An order granted authorization for Venture Global LNG Inc.’s Calcasieu Pass LNG export facility and associated TransCameron Pipeline in Cameron Parish, LA.
U.S. Federal Energy Regulatory Commission (FERC) issued the authorization and the U.S. Department of Energy supported the agreement for the LNG export terminals. FERC approved Venture Global’s Calcasieu Pass LNG export project by applying a new approach for consideration of direct greenhouse gas emissions from LNG facilities.
“Since I joined the commission, it’s been a priority of mine to expedite and improve our LNG terminal application review process,” said FERC Chairman Neil Chatterjee. “I’m extremely pleased that we are issuing the certificate order for the Calcasieu Pass LNG export terminal today (Feb. 21). This facility will have the capacity to export 12 million metric tons of U.S. LNG per year. But even more so, I really appreciate the efforts of my colleagues to work together to come to an agreement on this facility. This is significant, as I anticipate we’ll be able to use the framework developed in this order to evaluate the other LNG certificates that the commission is considering.”
Chatterjee added that FERC’s multi-pronged approach to improve its process over the past year put the agency in a position to move forward efficiently with the other 12 pending LNG projects.
“We signed an MOU with the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration, cut through unnecessary red tape and reduced interagency friction by signing the One Federal Decision MOU with our federal partners, and increased the number of engineers working on our reviews by casting a wide net to capture talent everywhere we could find it,” he said.
The Venture Global Louisiana project site is located on the Calcasieu Ship Channel and features deepwater access, proximity to plentiful gas supplies and ease of transport for buyers. The 930-acre project site is located where the ship channel meets the Gulf of Mexico. This location is in close proximity to several major interstate natural gas pipelines and is situated in the middle of one of the most active trading areas for pipeline-quality natural gas in North America. The project site is secured under exclusive agreements for up to a 70-year term.
“With our FERC order in hand and our project contracted with binding 20-year sale and purchase agreements (SPAs) with Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG, we plan to immediately commence construction activities in Louisiana in close coordination with FERC and other agencies,” said Venture Global co-Chief Executives Bob Pender and Mike Sabel in a joint statement. “We are excited to begin construction of our Calcasieu Pass project and deliver low-cost LNG to our global customers in 2022.”