A U.S. court has ordered federal regulators to reevaluate the greenhouse gas emissions impact of Commonwealth LNG’s Louisiana project. The ruling, from the U.S. Court of Appeals for the District of Columbia, mandates the Federal Energy Regulatory Commission (FERC) to address the environmental concerns raised by several environmental groups.
Environmental Concerns and Legal Challenges
Despite not overturning FERC’s 2022 approval of the project, the court directed the commission to reassess emissions and cumulative environmental effects. This decision followed a lawsuit by five environmental groups, including the Natural Resources Defense Council (NRDC), arguing that FERC did not sufficiently consider climate and pollution risks when approving the project.
“We believe it ‘reasonably likely’ that on remand, the Commission can correct the defects in its emissions and cumulative-effects analysis and still authorize the Project,” the court stated. The NRDC welcomed the ruling, emphasizing the need for a thorough assessment of the community and climate impacts of LNG projects.
Commonwealth LNG, which plans to begin shipping 9.5 million tonnes of LNG annually from Cameron, Louisiana, in 2028, has not yet made a final investment decision (FID). Lyle Hanna, a spokesperson for Commonwealth, indicated that the company would cooperate with FERC during the reassessment and expects to make the FID by the first half of 2025.
The 2022 FERC approval noted the terminal would produce around 3.5 million tonnes of carbon emissions annually. Despite these concerns, the approval was granted under federal natural gas laws, which mandate FERC to approve facilities unless they are against the public interest.
Implications for Future Approvals
The court’s decision could delay further approvals necessary for the project. ClearView Energy Partners, a nonpartisan research group, suggested that the Department of Energy, which authorizes exports to major global markets, might hold off on its decision while FERC reevaluates the emissions impact.
The NRDC highlighted that the ruling underscores the need for FERC to adhere to national environmental legal obligations. Caroline Reiser, a lawyer at the NRDC, stated, “This ruling underscores what we have said for years: FERC continues to violate bedrock national environmental legal obligations to assess the community and climate impacts of LNG projects.”
The court’s directive for FERC to reassess the greenhouse gas emissions of the Commonwealth LNG project reflects the ongoing scrutiny of environmental impacts in large-scale energy projects. The outcome of this reassessment will be crucial for the project’s future and may influence the regulatory landscape for similar projects.
Source: Reuters
