One of the US largest exporters of liquefied natural gas, Venture Global Inc., is raising questions over how to share a common waterway with a planned neighbor — it’s a move that underscores a coming bottleneck for shipping space in an energy sector that the Trump administration is supporting for increased exports.
The US, already the biggest global exporter of the fuel, is on track to nearly double its current capacity with a massive buildout of six projects under construction in Texas and Louisiana. And even more are in advanced stages of development as President Donald Trump has made moves to increase the flow of cargoes from the US.
But most of the existing plants and those in the works are heavily concentrated along the coast of Texas and Louisiana, which means that every new project will bring increased competition on waterways to keep shipments moving. The problem highlights broader issues for US infrastructure that can limit the flow of energy supplies even when there’s plenty of potential production.
Venture Global’s plant Calcasieu Pass, which sits on the east bank of the waterway of the same name, would be directly across from Commonwealth LNG on the west bank. Another rival, Cameron LNG, also operates just north of Venture Global. Two other planned projects, Woodside’s Louisiana LNG and Energy Transfer’s Lake Charles LNG are planned at north end of the waterway.
In a letter sent to the Federal Energy Regulatory Commission this week, Venture Global urged the regulator to scrutinize Commonwealth’s proposed waterway plan, known as a waterway suitability assessment, along with a letter it submitted in 2019 by the US Coast Guard, which gave a nod to the plan. Through its attorneys, Venture Global questioned what would happen when the channel would need to be closed to shipping traffic as vessels travel to and from Commonwealth LNG. Venture Global also raised issue over the potential for increased dredging and Commonwealth’s plans to create a turning basin, an area large enough for massive tankers to change directions.
Venture Global’s next project, CP2, is adjacent to Calcasieu Pass and was recently authorized by regulators. The full final investment is pending.
The commission “should ensure that the construction and planned operations of Commonwealth do not adversely impact existing LNG export terminals like Calcasieu Pass or other facilities utilizing the same or overlapping waterways,” the Venture Global letter said.
When asked for comment, Venture Global referred to the letter and declined to give further details.
Commonwealth said that its waterway suitability assessment and its Coast Guard letter of recommendations “comply with all applicable regulations,” adding that no changes were required.
Photo: Storage containers at the Venture Global Plaquemines liquefied natural gas export facility in Port Sulphur, Louisiana. Photographer: Kathleen Flynn/Bloomberg
Topics USA