U.S. Energy Department Approves Venture Global CP2 LNG Export Project

The U.S. Energy Department on March 19 authorized Venture Global’s proposals to export liquefied natural gas from its CP2 LNG project in Louisiana that had previously faced significant delays under the Biden Administration.

The approval follows President Donald Trump’s energy dominance agenda, which seeks to significantly expand U.S. oil and gas production and exports. The authorization marks the fifth LNG related approval since President Trump took office. In February, the department announced a new export authorization enabling Commonwealth LNG to export LNG to non-free trade agreement, or non-FTA, countries. The department has also announced an order removing barriers for the use of LNG as marine fuel to power vessels. Earlier this month, the department approved an LNG export permit extension for Golden Pass LNG terminal and an LNG export permit extension for Delfin LNG.

Last November, the Federal Energy Regulatory Commission issued an order setting aside its authorization for Venture Global’s CP2 export facility in order to conduct a supplemental environmental impact analysis on the project’s cumulative air quality and emissions impacts.

In January, the department ended a pause instituted under the former Biden administration on new export permit reviews. The move follows an executive order issued by President Trump directing the department to restart reviews of applications for approvals of export projects. The order requires public interest assessments to consider the economic and employment impacts to the U.S. and the impact to the security of allies and partners.

The CP2 project would have the capability to export 3.96 billion cubic feet per day (Bcf/d) of LNG. The department found that LNG exports from CP2 LNG would create significant economic benefits, enhance energy security for the U.S. and its trading allies, and diversify global LNG supplies. The department aims to issue a final order to CP2 LNG in the next few months.

U.S. LNG export profitability has significantly increased since the Russian invasion of Ukraine and the corresponding impact on global gas prices. The Russian invasion of Ukraine led to a structural shift in the market, which has impacted trading dynamics for a number of energy sources.