The Biden administration is currently at a crossroads regarding the approval of Venture Global’s new Louisiana LNG export project, CP2. The project has sparked a debate between environmentalists who argue that it undermines U.S. climate goals, and business interests who claim it is crucial for global energy security.
The Federal Energy Regulatory Commission (FERC), an independent body within the Department of Energy, will soon vote on the CP2 project. FERC has already granted CP2 final environmental approval. If built, CP2 would be double the size of Venture Global’s current CP plant and have an annual export capacity of 20 million metric tonnes of liquefied natural gas.
Under U.S. energy law, FERC is mandated to approve LNG projects unless they are not in the “public interest.” However, the commission is not required to consider climate implications in its decisions. Additionally, CP2 requires approval from the Department of Energy to export LNG to countries without a U.S. free trade agreement, including key regions in global energy politics such as Europe and Asia.
The Biden administration is considering a more stringent review process for LNG export permits, with a focus on the impacts of climate change. There is even speculation of a potential permit moratorium until this environmental review is complete. However, neither the White House nor the Department of Energy has commented on these developments.
Opposition to CP2 comes from environmentalists like Bill McKibben, who sees the project’s approval as a significant mistake that would release more greenhouse gases than recently approved major projects. These environmental activists are planning protests and have filed lawsuits against recent project approvals, while also launching online campaigns against CP2.
On the other hand, business groups in Asia and Europe are pressuring the U.S. to approve LNG projects. They argue that LNG is a necessary transition from coal and have concerns about the U.S.’s commitment to maintaining supply. Eurogas, representing 77 companies and associations, has even appealed to the U.S. to avoid restricting LNG exports to Europe, particularly in light of Europe’s efforts to reduce gas imports from Russia due to the Ukraine conflict.
However, the Biden administration is facing complications in an election year. Consulting firm Rapidan Energy Group predicts that new export licenses are unlikely to be issued before the elections due to pressure from environmentalists and Democratic lawmakers.
