The U.S. Department of Energy (DOE) has granted a conditional permit for the export of liquefied natural gas (LNG) from Venture Global's Calcasieu Pass 2 (CP2) project, located in Cameron Parish, Louisiana. This approval allows Venture Global to export LNG to non-free-trade-agreement (non-FTA) countries, marking a significant step towards bolstering U.S. energy security and diversifying global LNG supplies.
On March 20, 2025, the DOE's announcement highlighted that the approval would likely yield economic benefits for the United States, diversify global LNG supplies, and enhance the energy security of U.S. allies and trading partners. Energy Secretary Chris Wright emphasized the importance of this decision, stating, "Thanks to President Trump’s leadership, we are cutting the red tape around projects like CP2, unleashing our energy potential, and ensuring the U.S. can continue to meet growing energy demand for decades to come." This approach aligns with the administration’s ongoing efforts to increase U.S. exports of LNG, following a pause in approvals by the previous administration in 2024.
The CP2 LNG facility is designed to handle a capacity of 20 million tonnes (Mt) per year, with an optimal peak capacity of up to 28 Mt annually. The project is expected to start full operations in 2026, building on the framework established by the earlier Calcasieu Pass LNG project, which commenced production in early 2022. With both projects combined, this would significantly enhance the United States' position in the global LNG market.
As part of this conditional approval, the DOE noted that it had reviewed public comments and concluded that CP2’s non-FTA exports would not adversely affect the domestic natural gas supply or result in price increases that could negate the economic benefits derived from the project. The DOE’s confidence in the project's viability reinforces its commitment to ensure that the United States meets increasing energy demands both domestically and internationally.
Venture Global has already secured sales through 20-year agreements with major corporations, including ExxonMobil, Chevron, JERA, New Fortress Energy, INPEX, China Gas, SEFE, and EnBW, covering the initial phase of CP2 LNG. The company is actively engaged in discussions for the remaining capacity, demonstrating a strong market interest in U.S. LNG exports. Furthermore, significant off-site construction has commenced as Venture Global awaits additional authorizations from U.S. regulators.
The project has seen a positive trajectory, as the DOE previously validated a portion of its export request in April 2022, allowing the export of approximately 1.45 trillion cubic feet annually to countries with free-trade agreements. The recent conditional approval for non-FTA exports represents the fifth LNG-related endorsement by the DOE under the current administration, reflecting a strategic pivot in energy policy aimed at supporting growth in the LNG sector.
In a statement, Mike Sabel, CEO of Venture Global, expressed gratitude for the improved regulatory climate, saying, "This will enable us to provide our allies around the world with American LNG in just a few years and for decades to come." His words capture the optimism surrounding CP2's role in enhancing the United States’ global energy exporting capabilities.
The approval of CP2 LNG is not just a singular success; it is also indicative of a broader trend where U.S. LNG export capacities are projected to increase by over 50% by 2026, with total export volumes expected to double by 2050. As of now, the DOE has conditionally permitted or authorized approximately 50.84 billion cubic feet daily of export capacity for non-FTA nations spread across numerous projects, solidifying America’s strategic position in global energy markets.
With construction ongoing and several agreements in place, the CP2 LNG terminal looks to lead the charge in meeting not only domestic energy requirements but also fulfilling the needs of international partners. The DOE's forthcoming actions, including a final order expected in the coming months, will further clarify the project's path and underline the continued urgency behind U.S. LNG expansion efforts.
In summary, the approval for Venture Global's CP2 LNG export project marks a pivotal advancement in U.S. energy policy under the current administration, promoting a framework that prioritizes energy security, economic benefits, and global market diversification. As the project progresses into the operational phase, it is poised to play a critical role in the evolving landscape of energy exports, reinforcing the United States' position as a formidable player in the international LNG market.
