U.S. regulator suspends review schedule for Venture Global LNG plant

7/8/2022

(Reuters) - The U.S. energy regulator suspended its environmental review schedule for Venture Global LNG's proposed CP2 liquefied natural gas export project, citing deficiencies in filings.

The U.S. Federal Energy Regulatory Commission (FERC) said on Wednesday that while the schedule for its environmental reviews was suspended, it would continue to process the proposal "to the extent possible" based on information received thus far.

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FERC's original schedule set a July 2022 issue date for a draft Environmental Impact Statement (EIS) and a February 2023 date for the project's final EIS.

Venture Global LNG has said it planned to make a final investment decision (FID) to build CP2 in mid 2023 with first LNG expected in 2026.

"Venture Global is working hard to complete outstanding regulatory deliverables for CP2," spokesperson Shaylyn Hynes said in an email.

"We appreciate that FERC continues to process CP2 and remain committed to satisfying the Commission's regulatory requirements," Hynes said.

Analysts at ClearView Energy Partners LLC, a consulting firm, said the FERC action was noteworthy because "Congressional overseers have levied strong criticism at FERC ... for not approving LNG and pipeline projects ... in a sufficiently timely manner since 2021."

CP2 appears to be a viable project that has been identified as a supplier in a 20-year contract with German energy company EnBW Energie Baden Wuerttemberg AG, ClearView also noted.

The Biden administration has made it a priority to supply Europe with more natural gas via LNG exports as the European Union weans itself off Russian energy after Moscow's Feb. 24 invasion of Ukraine.

CP2 is designed to produce about 20 MMtpy of LNG. It will be located next to Venture Global's existing Calcasieu Pass export plant in Louisiana.

(Reporting by Scott DiSavino; Editing by Marguerita Choy)