CP2 LNG, CP Express face environmental group challenge to FERC application

An environmental group is urging the US Federal Energy Regulatory Commission to conduct an "exhaustive" evaluation of Venture Global's proposed CP2 LNG export terminal and CP Express Pipeline, taking into account not only the two projects at hand but also the proliferation of LNG terminals and pipelines serving them in southwest Louisiana and southeast Texas.

The effort reflects the increasingly steady opposition to LNG projects in FERC dockets from environmentalists, as gas industry development concentrates on the US Gulf Coast region to serve the thriving export market. It also comes as environmentalists recently gained some ground with an appeals court decision remanding two FERC LNG project authorizations for better explanation of climate and environmental justice analyses.

In comments Jan. 5, Healthy Gulf called on FERC to go beyond examining the two projects to conduct a programmatic environmental impact statement because of the spread of LNG related facilities in the area (CP22-21, CP22-22).

It also advocated a sweeping look at cumulative impacts that covers gas development from any feedstock source, climate impacts, and the impact of other oil, gas and petrochemical facilities in the area.

CP2 LNG application

Venture Global Dec. 2 applied at FERC for permission to build the export project in Louisiana that would be capable of producing more than 20 million mt/year of LNG, along with the associated 85.4 mile, 48-inch-diameter CP Express pipeline running from Jasper County, Texas, to the terminal. The LNG terminal would sit adjacent to Venture Global's Calcasieu Pass LNG export terminal in Cameron Parish, Louisiana, now under construction.

Besides Calcasieu Pass and CP2, Venture Global has also proposed the already permitted Plaquemines LNG project in Plaquemines Parish, Louisiana, and the Delta LNG project, which would have a capacity of up to 24 million mt/year.

In its comments, Healthy Gulf lamented the fact that after LNG projects and associated feedgas projects are reviewed, other projects often arise to serve the facilities, but those are not captured in FERC's analysis of the original projects.

"In the case of Venture Global Plaquemines LNG, at least three other projects have been proposed to FERC, US Army Corps of Engineers, and Louisiana Department of Natural Resources, that weren't mentioned in the public environmental reviews of that project," it argued.

Further Healthy Gulf argued that FERC's review should encompass CP2 LNG's proposed carbon capture and storage, announced Dec. 2, and look deeply into environmental justice impacts and affects on coastal wetlands, aquatic systems and air pollution.

Pitching suspension

Even with its call on the one hand for an exhaustive evaluation of the project, Healthy Gulf also suggested the FERC review be suspended to allow public comment on a wide scope of projects.

"The public must be made aware of all of the many projects that will be constructed and associated with the project, and all such ancillary projects must be reviewed together with the project," Healthy Gulf wrote.

"Given this, FERC provides a critical gatekeeper function for fossil gas development, including having the authority to stop a project. We request that FERC suspend this project now."

Ultimately, Healthy Gulf argued the project was so "ill-advised" that FERC and other agencies should not waste their valuable resources evaluating it.

Notably, the commission has recently rejected other calls for programmatic environmental impact statements, interpreting White House Council on Environmental Quality rules as not requiring such broad reviews. For instance, in its September 2021 final EIS for the East Lateral XPress project, FERC staff said such an analysis for the project alongside the Plaquemine LNG terminal and Gator Express project was not needed.