Venture Global's 28 MTPA CP2 LNG Plant Receives FERC Approval

Venture Global, Inc. VG has recently received the necessary approvals from the U.S. regulatory authorities for the construction of the CP2 liquefied natural gas (“LNG”) plant in Louisiana. A document by the Federal Energy Regulatory Commission (“FERC”) confirmed the same.

Venture Global had previously received approval for the construction of the CP2 LNG project from the FERC. However, following a ruling by a U.S. Court of Appeals regarding a similar LNG project, the FERC decided to conduct an additional assessment of the impact of this project on the region’s air quality.

Green Light for CP2 LNG Project

The study concluded that the construction of the LNG project should be allowed to continue. The regulatory approvals for the projects came in after the final environmental review showed that the project would not have a material impact on the area’s air quality, and the construction of the plant is in the public interest. The CP2 LNG plant will be constructed adjacent to VG’s Calcasieu Pass LNG facility in Louisiana.

Venture Global Set to Become U.S. LNG Leader

The construction of the 28 million metric tons per annum (MTPA) LNG plant should support the export capabilities of the United States and solidify its position as the largest exporter of natural gas. The CP2 plant is expected to be the largest LNG export facility in the country. The completion of the plant could also make Venture Global the largest LNG company in the United States.

After receiving approval from the regulatory authorities, the company’s CEO has stated that the on-site construction of the project will begin immediately. The supplemental environmental review for the CP2 project came in after a ruling by the U.S. Court of Appeals for the District of Columbia Circuit against NextDecade Corporation’s LNG plant at the Port of Brownsville. This overturned the FERC’s prior approval for the construction of the plant.

Following this, the FERC decided to closely assess the impact of the CP2 LNG plant on the air quality of the region. The CP2 LNG project in Louisiana has been caught in a conflict between the energy sector and environmentalists who are seeking to limit the expansion of LNG projects in the United States.

VG’s Zacks Rank & Key Picks

VG currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK, Energy Transfer ET and RPC, Inc. RES. Flotek Industries presently sports a Zacks Rank #1 (Strong Buy), while Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industriesspecializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.

RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to its shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns.

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This article originally published on Zacks Investment Research (zacks.com).

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