Appeals court sends Commonwealth LNG decision back to FERC

The U.S. Court of Appeals of the DC District agreed on Wednesday that the Federal Energy Regulatory Commission failed to fully and adequately assess the cumulative and direct environmental and health impacts caused by Commonwealth LNG,

The export terminal is scheduled to be built on 400 acres west bank of the Calcasieu Ship Channel in Cameron Parish near the Gulf.

The decision does not vacate FERC’s approval in 2022, but returns the decision to FERC for reconsideration.

It is reasonably likely that, on remand, the Commission can redress the defects in its greenhouse gas-emissions and cumulative effects analyses and still authorize the project, according to information provided about the ruling by Lyle Hanna, Commonwealth LNG VP, corporate communications.

“Commonwealth LNG has worked constructively and cooperatively with FERC throughout the development of our facility,” Hanna said, “and will continue to provide all relevant data during the reassessment process. We continue to target the first half of 2025 for a Final Investment Decision on the project, allowing us to begin producing LNG in 2028.”

The court’s decision comes in response to lawsuits filed last year by Sierra Club on behalf of itself and other environmental groups including Bucket Brigade. James Hiatt was a member of Bucket Brigade at that time. He currently heads Better Bayou, a different environmental advocacy group.

“Now FERC has to address these concerns before the certificate  is valid,” Hiatt said.

Hiatt also offered a brief update  on Venture Global’s second export facility, Calcasieu Pass 2. CP2 is planned for build out next to Venture Global’s first facility and Commonwealth LNG export terminal. FERC approved the facility June 27.

CP2 is still missing permits, Hiatt said, and its coastal use permit is going to be litigated.

CP2, would ship upwards of 20 million metric tons of gas overseas from Louisiana’s shoreline every year, making it the nation’s biggest LNG export terminal if approved.

The current administration paused the Department of Energy’s permitting of new LNG export facilities that ship to non free trade countries at the beginning of the year. The pause will need to be lifted by the current or next administration in order for CP2 and Commonwealth to begin construction.