Federal regulators on Thursday approved one of the nation's largest natural gas export projects, despite a White House effort to temporarily halt the growth of overseas gas shipments amid worries about their climate impact.
The Federal Energy Regulatory Commission approved the permit for the proposed Calcasieu Pass 2 liquefied natural gas terminal, a hotly debated project along the coast of Louisiana.
The green light for Virginia-based Venture Global comes months after the Department of Energy announced it would stop issuing new export licenses while it studies how U.S. shipments of natural gas affect American consumers and contribute to climate pollution. Under the FERC permit approved Thursday, the company can build the export facility but will have to wait for the Energy Department to issue a separate permit to ship the gas overseas.
Methane, the major component of natural gas, is a potent greenhouse gas that contributes to rising global temperatures when it’s emitted into the atmosphere. It is also a major source of fuel for electricity generators and home heating in the United States, in parts of Europe and across Asia.
The FERC decision came hours before President Joe Biden is due to face former President Donald Trump in their first debate ahead of the November election. Trump has made Biden’s energy and climate policies a major target of his criticism, ridiculing Biden’s support for electric car subsidies and promising to put the brakes on the administration’s hundreds of billions of dollars in incentives for clean energy projects.
But Biden can also boast — or steer well clear of — another fact: The United States is the largest oil and natural gas exporter in the world. That mostly happened on Biden’s watch, as oil prices rose again after the global Covid pandemic ended and drillers in West Texas set new production records. The White House has faced withering criticism from environmental groups upset that Biden hasn’t done more to cut off drilling on public lands and pushed a harder line against oil profits.
After Russia invaded Ukraine, the Biden administration helped facilitate shipments to European nations as they attempted to replace Russian gas. That helped support the energy industry. But it also put a spotlight on Europe’s dependence on gas to fuel its economies.
The DOE pause is temporary, White House officials assured the industry and angry Republicans when it was first announced in January. Officials have said DOE expects to lift the pause by the end of March 2025. And in the meantime, it doesn’t prevent FERC from continuing to issue permits for gas export infrastructure, most of which is along the Gulf Coast.
Fight over fossil fuels
The Louisiana terminal project, known as CP2, is designed to send more than 20 million metric tons of liquefied natural gas per year to global customers.
If ultimately built, it will be next to the existing Calcasieu Pass LNG terminal in Louisiana’s Cameron Parish. The new project has become a flashpoint in a national debate around fossil fuels and oil and gas export infrastructure.
“This project will be critical to global energy security and supporting the energy transition, as well as provide jobs and economic growth across Louisiana and the United States,” Venture Global CEO Mike Sabel said in a statement Thursday.
FERC is an independent agency under the Energy Department, with commissioners nominated by the president and confirmed by the Senate. The commission voted 2-1 vote to issue the permit.
Departing Commissioner Allison Clements, a Democrat, dissented. "The commission has not adequately addressed the project's environmental and socioeconomic impacts, including adverse impacts on environmental justice communities," Clements said at the start of the meeting.
Critics of the project gathered outside FERC’s headquarters, near Washington’s Union Station.
Roishetta Ozane, founder of the group Vessel Project of Louisiana, said it’s time to “write FERC off.” She said activists are going to put pressure on the Biden administration to rein in fossil fuels.
“We’re going to say that FERC is a rogue agency that does not care about communities,” Ozane told a crowd of a few dozen people. “But who can do something while we are here is this administration. We need to continue to put pressure on the Department of Energy.”
Ozane also called for DOE’s pause on natural gas export approvals to be made permanent.
In a media briefing Thursday after FERC’s open meeting, Chair Willie Phillips, a Democrat, said considering gas projects for approval requires a delicate balance. He said FERC has a duty to environmentally disadvantaged communities and also a duty to abide by the law.
“I’ve been consistent — when matters are complete, when our review is final, then we give those matters a vote,” Phillips said. “And this matter is consistent with the standard that we’ve set for every other project.”