Author: Mostafa Sharif

 

Fully-supported by the Trump administration, the US LNG developers are pushing to launch their projects as earlier as possible to enter the market before an expected glut in 2030-2031.

 

However, Venture Global LNG has recently flagged congestion risk on the Calcasieu Pass, which is the unique waterway for accessing the world LNG market by most of existing and under-development LNG projects in Louisiana, USA.

 

The LNG developer has asked the US Federal Regulatory Energy Commission (FERC) to make sure the country’s Coast Guard (USCG) assessment of its rival project, Commonwealth LNG, adequately considers potential impacts on the Venture Global-operated Calcasieu Pass facility’s maritime operation via the waterway.

 

* Kimmeridge Energy and Venture Global are expected to reach FID this year on their planned Commonwealth LNG and CP2 projects, respectively. These projects alongside with the already sanctioned Woodside Louisiana LNG and at least two other proposed projects are set to be located at the mouth and sideline of the Calcasieu Pass.

 

* The US LNG projects are already struggling with some critical challenges, such as fierce competition with compatriot and foreign LNG suppliers, Trump’s tariff wars and increasing construction timelines and costs, geopolitical risks, financing constraints, and continuing legal challenges in the US courts, that could delay the projects.

 

How to Manage the Congestion Risk (R&R and Solutions)

 

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LNG carriers are large and require specific conditions for safe navigation. Any new development should not compromise their maneuverability or create hazards in the waterway.
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This is a summary of the article which its full version is available for our subscribers at: here

 

 

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Source(s) Author: Mostafa Sharif, Global LNG Database®