Appeals Court Upholds Federal Approvals for $28B CP2 LNG Project

Energy Infrastructure Appeals Court Upholds Federal Approvals for $28B CP2 LNG Project Developer Venture Global and contractor Worley advance construction of Louisiana export terminal after ruling rejects environmental challenges A federal appeals court Aug. 25 rejected environmental challenges to Venture Global’s CP2 LNG terminal and its associated pipeline in Louisiana and Texas, leaving U.S. agency approvals intact as construction advances on the multibillion-dollar project. The U.S. Court of Appeals in Washington, D.C., denied petitions challenging Federal Energy Regulatory Commission approvals for the terminal and CP Express pipeline under the Natural Gas Act and National Environmental Policy Act. The court rejected 11 challenges involving air pollution, climate effects, impacts to commercial fishing and public-interest determinations by FERC. Read More U.S. Court of Appeals — Petitions for Review: Orders of Federal Energy Regulatory Commission The ruling comes with construction well underway on the estimated $28-billion project in Cameron Parish, Louisiana. Venture Global said Aug. 11 that 16 liquefaction modules are on site, roofs have been raised on all four LNG storage tanks and five gas and steam turbines have been set on foundations. The developer expects to export first LNG in the second half of 2027. Worley is the engineering, procurement and construction contractor for both phases. ENR reported in February that Venture Global awarded Worley the Phase 2 EPC contract after reaching a final investment decision last year on the $15.1-billion first phase. The developer reached second-phase final investment decision in March and secured another $8.6 billion in project financing. The terminal is designed to produce up to 28 million metric tons of LNG annually, with 36 modular liquefaction trains, four storage tanks and two marine loading berths. The CP Express project includes an 85-mile pipeline extending from East Texas to the terminal and the Moss Lake Compressor Station. Looking for quick answers on construction and engineering topics? Try Ask ENR, our new smart AI search tool. Ask ENR → Court Backs FERC Review Section 3 of the Natural Gas Act creates a presumption favoring LNG terminal authorization unless opponents affirmatively show that a project would be inconsistent with the public interest, the court held. “The Commission begins its review from the position that it will—indeed, that it must—authorize a terminal unless the presumption is rebutted,” Senior Circuit Judge Douglas Ginsburg wrote for the unanimous panel. Evidence of environmental harm alone does not overcome that presumption, the court found. The panel separately upheld authorization of CP Express, finding FERC could rely on a long-term agreement between Venture Global subsidiaries for the pipeline’s full capacity to establish market need absent evidence of self-dealing. FERC also cited transportation capacity, jobs and other economic benefits in finding the pipeline was required by public convenience and necessity. Air, Fishing Challenges Rejected FERC initially approved the projects in June 2024 but later reopened portions of its environmental analysis after earlier appeals court rulings raised concerns about how the commission evaluated cumulative nitrogen dioxide and particulate matter emissions. A map included in the DC appellate court Aug. 25 ruling shows the CP2 LNG terminal footprint along the Calcasieu Ship Channel and the boundary used in assessing potential impacts on commercial shrimping. Map: U.S. Court of Appeals/Venture Global CP2 LNG A supplemental environmental impact statement issued in May 2025 used updated Louisiana emissions data and modeling and found no significant cumulative air-quality impacts. FERC then reaffirmed the approvals. ENR reported last December that FERC authorized construction of the Moss Lake Compressor Station after completing the review, allowing Venture Global to accelerate work across the 1,150-acre site. FERC reasonably relied on U.S. Environmental Protection Agency national ambient air quality standards rather than on a separate health-impact screening model, the court found. The commission’s “choice among reasonable analytical methodologies is entitled to deference,” Ginsburg wrote. The court also found FERC adequately considered impacts on commercial fishing in the Calcasieu Ship Channel. The agency acknowledged construction during peak fishing periods and possible permanent effects from marine facilities and LNG carrier traffic, but adopted mitigation measures. The panel said FERC considered the “potential long-term effects on the commercial fishing industry” and reasonably approved the terminal despite them. Southern Environmental Law Center attorney Megan Gibson, representing challengers, criticized the decision, saying it leaves local communities exposed to the project's health and economic effects. “Today's decision allows that approval to stand, putting this community's health and local economy at further risk while companies like Venture Global pursue profits from exports overseas,” she said. The ruling comes as Venture Global seeks to expand the planned capacity of the CP2 terminal. The company filed applications this year to add 11.7 million metric tons per year of capacity, and FERC held the first public scoping session in Cameron Parish on the company proposal on Aug. 25, the same day the appeals court issued its decision. A second session is set for Aug. 26 in Buna, Texas.