CP2's Triple Challenge: New Arguments in FERC Rehearing Request

Written by ArboIQ | Jan 15, 2025 11:00:00 AM

Originally published for customers November 6, 2024.

The CP2 LNG export project has faced complex regulatory hurdles, including a halted construction order, ongoing DOE reviews, and potential dual appeals at the DC Circuit. As one of the largest proposed LNG facilities in the U.S., CP2 holds strategic importance, and stakeholders must understand how evolving air quality methodologies, legal precedents, and regulatory uncertainty impact project timelines — as well as broader implications for the LNG industry amid potential shifts in federal policy and leadership.

What’s the issue?

Venture Global recently requested rehearing of the FERC order halting construction on the CP2 project. CP2 exemplifies the complex challenges facing LNG projects, with parallel proceedings at FERC, the DC Circuit, and DOE.

Why does it matter?

With billions in commitments and agreements with major international buyers, understanding the timing and interaction of these challenges is crucial for project development and market analysis.

What’s our view?

While FERC's unusual decision to partially set aside its order and halt construction leaves project timing uncertain, the incoming administration's strong support for LNG exports could accelerate resolution. The timeline could become clearer early in 2025, particularly if there is new leadership at FERC and DOE.

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