If you think LNG is America’s energy darling, think again. Two major Gulf Coast projects—Venture Global’s CP2 and Commonwealth LNG—are stuck in limbo as the U.S. Department of Energy (DOE) says its hands are tied until the Federal Energy Regulatory Commission (FERC) finishes environmental reviews. This isn’t just bureaucratic red tape; it’s a tug-of-war between energy expansion and environmental scrutiny.
FERC recently yanked Venture Global’s construction go-ahead for CP2, demanding another environmental review. Commonwealth LNG is in a similar boat, waiting for FERC’s nod. With no clear timeline, developers are frustrated, environmentalists are elated, and the industry is left holding its breath.
The stakes couldn’t be higher. The U.S. is the world’s top LNG exporter, thanks to soaring demand in Europe post-Russian pipeline woes. The US exported nearly 12 billion cubic feet per day last year, outpacing rivals like Qatar and Australia. But delays like this threaten that momentum, and let’s not forget that under Biden, approval times for new LNG projects have stretched from weeks to nearly a year.
Adding fuel to the fire, natural gas prices are wobbling. While crude oil prices are holding steady—WTI at $69.01 and Brent at $72.68—natural gas is sliding, down 1.73% to $3.127. That’s not great news for an industry facing rising costs and political hurdles.
Venture Global isn’t mincing words, calling the additional FERC review unnecessary. But this is more than a one-off slowdown; it’s emblematic of a broader clash. Coastal communities in Louisiana and Texas are speaking out against pollution, and climate activists are leveraging these grievances to push for fewer hydrocarbon projects altogether.
What will likely follow is uncertainty, delays, and more court battles. The Biden administration’s focus on stricter environmental reviews has drawn praise from activists but sparked ire among energy execs. As the industry tries to balance expansion with regulation, LNG’s future is anything but smooth sailing.
Source: By Julianne Geiger from Oilprice.com