The US Federal Energy Regulatory Commission (FERC) has issued the final supplemental environmental impact assessment (EIS) for Venture Global's CP2 LNG export project in Louisiana, recommending the project’s approval.

The CP2 project, if constructed, will become the largest LNG export facility in the US.

While the project had previously received construction approval for its 28 million tonnes per annum (mtpa) capacity, a new environmental assessment was required after a court decision mandated further review of air quality impacts.

The additional review was prompted by an August 2024 ruling from the US Court of Appeals for the District of Columbia Circuit, which overturned the FERC’s approval of a similar LNG facility proposed by NextDecade in Texas, reported Reuters.

In response, the FERC undertook a reassessment of CP2's air quality impacts before reaffirming its support for the project.

The final supplemental EIS was developed in accordance with the stipulations of the National Environmental Policy Act (NEPA) and the FERC regulations that implement NEPA, as outlined in Title 18 of the Code of Federal Regulations, Part 380.

Commission staff have determined that the emission impacts, which include one-hour nitrogen dioxide (NO₂) and annual particulate matter (PM2.5) emissions from the Moss Lake Compressor Station and the CP2 LNG Terminal, are not significant when considered alongside past, present and reasonably foreseeable emissions within the regional air environment.

The staff concluded that there would be no significant cumulative air quality impacts from the project.

The FERC said in a statement: “The Commission will take into consideration the analysis and conclusions of the final supplemental EIS in its further merits order for the project.”

The CP2 LNG terminal is set to be built on a 1,150-acre site in Cameron Parish, Louisiana.

It will be supplied with natural gas by the CP Express pipeline, which will originate in Jasper and Newton counties in Texas.

In a related development, Venture Global's subsidiary, Venture Global CP2 LNG, secured a $3bn bank loan facility from 19 banks.

This loan will support the ongoing manufacturing, procurement and engineering of the CP2 LNG export facility, covering various project costs and funding reserves for debt service, fees and other expenses.