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The Federal Energy Regulatory Commission voted Thursday to approve the Calcasieu Pass 2 liquefied natural gas export terminal on Louisiana’s Gulf Coast, but the project’s future is uncertain because of the Biden administration’s pause on new U.S. Department of Energy authorizations for LNG exports.
The planned $10B terminal owned by Venture Global LNG would supply 20M metric tons/year to customers and give the U.S. a major boost as it looks to help the European Union reduce its reliance on Russian fossil fuels; the company said it has already signed LNG supply deals with buyers in the EU and in Ukraine.
The project has been opposed by environmentalists who say the project would entrench the use of fossil fuels; environmental activist Bill McKibben told Reuters the FERC approval was a travesty, and that President Biden’s decision to pause new permits is now “the only defense against the indefensible.”
FERC’s approval clears the way for Venture Global LNG, which already has two plants operating or under development in Louisiana, to become the second-largest U.S. LNG exporter, behind Cheniere Energy (NYSE:LNG).
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August Nymex natural gas settled Thursday -2.2% at $2.685/MMBtu.