Another US LNG Facility Reaches Full Operations At A Critical Time

Forbes

20-05-2025

CAMERON, LA - APRIL 13: An LNG tanker makes its way into Cameron Pass near the site of Venture ... More Global LNGs facility at Cameron Pass, near Cameron, Louisiana, on Wednesday, April 13, 2022.
Speaking to reporters in the Oval Office recently, President Donald Trump delivered a clear message to leaders in Europe: If you want to avoid a tariff war with the United States, buy more energy from U.S. companies. A lot more energy, including liquefied natural gas (LNG).
'They're going to have to buy their energy from us, because they need it,' Trump said, adding, 'They're going to have to buy it from us. They can buy it, we can knock off $350 billion [in the U.S. trade deficit with the European Union] billion in one week.'
The E.U. is now proposing a blanket ban on Russian gas by 2027, a ban that would begin to kick in as soon as this year. 'Today the European Union sends a very clear message to Russia — no more,' EU energy chief Dan Jørgensen said of the proposal.
But it leaves open the question – what will replace the Russian gas?
Fortunately for Europe and other buyers of U.S. LNG, the United States continues to grow its LNG capacity – and quickly. Venture Global, a leading US exporter known for its speed to market, announced on April 15 that it had achieved its commercial operations date (COD) at its Calcasieu Pass facility in Cameron Parish, Louisiana.
This marked the launch of long-term contracts to European allies such as Poland, France, Portugal, Spain and Italy who will now receive LNG from Venture Global for 20 years. These multi-billion-dollar contracts will have an enormous and steady positive impact on the US balance of trade with Europe for decades to come.
American innovators have dramatically sped up the time it takes to get US LNG to the global market. Calcasieu Pass reached commercial operations in under 68 months from its August 2019 final investment decision. Some other projects have taken significantly longer to achieve this milestone in their development cycle.
The industry has shown itself to be resilient even after a decline in natural gas prices, but more still needs to be done. This is why it is crucial that regulators in the U.S. continue to approve LNG projects that the Biden administration previously stalled.
The Federal Energy Regulatory Commission (FERC) just reiterated its previous environmental analysis that Venture Global's Calcasieu Pass 2 (CP2) project should move forward. A swift final vote by the FERC Commission to let CP2 break ground would enable the project to potentially bring new LNG online by 2027 – just as the European ban on Russian gas is finalized.
Venture Global's expansion is symbolic of a rapidly expanding US LNG industry, one that fully aligns with the Trump Administration's goals of cutting America's trade deficits, enhancing U.S. energy security, and returning the country to the status of 'American Energy Dominance' which characterized his first term. Emboldened by the tailwinds created by the change in permitting environment, US companies are moving full steam ahead on their development plans and construction of new facilities. The good news is that the United States can absolutely step in with more US LNG supply.
With the tide of domestic public policy now turned decidedly in the favor of expanded use of oil and natural gas, including President Trump's reversal of Biden's LNG 'pause' order, the shackles on the industry's push to expand to meet rising international demand have been removed. The EU plan to wean itself off Russian gas imports will only increase that momentum.
According to media reports, some officials in the Trump Administration may be advocating for increasing energy flows from Russia as part of a larger deal. But doing that would be in direct conflict with the administration's already established goals for a rapid expansion of the U.S. LNG industry. A new report from S&P Global finds that $120 billion in US LNG value chain direct expenditure would be at risk in an 'open the taps' scenario, transferring wealth from the American people to Putin's pockets.
President Trump leaves no doubt about his desire to end the war in Ukraine, but not at the expense of the American people. The President's support for the continued growth of the US LNG industry will support economic growth for years to come.
The challenge for industry now shifts from one of frustration over not being allowed to move ahead with some of the LNG projects they'd like to build to one of being able to bring new LNG capacity online as quickly as America's European allies need it to fully divest from Russian gas. Luckily, American companies continue to follow through on their promises to deliver U.S. LNG quickly, affordably, and reliably.