By Timothy Gardner
WASHINGTON (Reuters) – U.S. President Donald Trump’s administration granted Venture Global LNG approval on Wednesday to export natural gas from a proposed Louisiana facility which had faced delays under former President Joe Biden.
The approval comes as Trump seeks to vastly expand U.S. oil and gas production and exports as part of what he calls his “energy dominance” agenda. The U.S. is already the world’s top producer of oil and gas, and the No. 1 LNG exporter.
The Energy Department said in a press release on Wednesday that it has authorized widespread exports from Venture Global’s CP2 project in Cameron Parish.
Venture Global’s share price, which has fallen 60% since its initial public offering in January, was trading higher on Wednesday morning, up 4% from Tuesday’s close.
The export permit approval is the fifth LNG-related approval from the Department of Energy since President Donald Trump took office and lifted a freeze on new export permits imposed by the previous administration to study their environmental impacts.
“The benefits of expanding U.S. LNG exports have never been more clear, and I am proud to be taking action to support the American people and our allies abroad with more affordable, reliable, secure American energy,” said Energy Secretary Chris Wright.
“We are grateful for the Trump Administration’s return to regular order and regulatory certainty that will allow us to further expand U.S. LNG exports,” said Venture Global in a press release on Wednesday.
The administration of former President Joe Biden had been concerned that the rapid expansion of the U.S. LNG business would increase greenhouse gas emissions, particularly through methane escaping from leaky pipelines and other infrastructure.
Venture Global has already secured long-term supply agreements for CP2 with companies including Exxon Mobil, Chevron, JERA, New Fortress Energy, INPEX , China Gas, SEFE and EnBW, the company said.
Despite securing the permit, the 20 million metric tons per annum CP2 project also remains subject to final approval from other federal regulators, and Venture Global is still in the process of making a final investment decision.
In December, the Federal Energy Regulatory Commission (FERC) pulled Venture Global LNG’s authorization to construct the CP2 export facility, requiring an additional environmental review of air quality impact.
CP2 has been at the center of a fight with environmentalists seeking to limit future LNG projects on the U.S. Gulf Coast.
(Reporting by Surbhi Misra in Bengaluru;Curtis Wiulliams in Houston Editing by Kim Coghill, Rashmi Aich and Franklin Paul)
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