The Federal Energy Regulatory Commission (FERC) recently approved the construction of the Calcasieu Pass 2 LNG plant in Louisiana. This project, developed by Venture Global LNG, has drawn mixed reactions, becoming a point of friction between energy development goals and environmental concerns. FERC’s decision, made by a 2-1 vote, authorizes the construction and operation of this new LNG plant and an associated 137-kilometer pipeline. Outgoing Commissioner Allison Clements disagreed, noting the significant greenhouse gas emissions the project will generate, equivalent to those from 1.8 million additional gasoline-powered cars each year.
Environmental and Economic Impact
Venture Global LNG says the multibillion-dollar project is critical to global energy security and the energy transition, and will create jobs and spur economic growth in Louisiana and the United States. The plant is expected to supply 20 million metric tons of LNG annually to customers in Europe, Japan, China and U.S. exporters. However, environmentalists have been vocal in their criticism of the project, arguing that it will increase fossil fuel use and increase pollution in surrounding communities while exacerbating global warming. FERC’s decision makes Alexandria, Virginia-based Venture Global LNG the second-largest LNG exporter in the United States, behind Cheniere Energy.
Regulatory Context and Reactions
The project is the first to get a construction permit since the Biden administration in January suspended future LNG export permits to review their economic and environmental implications. That review is expected to conclude after the U.S. presidential election in November. Bill McKibben, an environmental activist and distinguished scholar at Middlebury College, called FERC’s approval “a travesty for science and environmental justice,” noting that this summer was the hottest in human history. He stressed the importance of the Biden administration’s decision to pause new permits as a crucial defense against projects he considers indefensible.
FERC’s approval of the Calcasieu Pass 2 plant highlights tensions between growing energy needs and environmental imperatives. As Venture Global LNG prepares to strengthen its position in the LNG market, debates over climate impacts and energy transition strategies continue to polarize players in this key sector.
