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Investing.com -- Venture Global’s (NYSE: VG) stock rose 6.5% after Bloomberg News reported that the Trump administration is set to grant conditional approval for the company to export liquefied natural gas (LNG) from its CP2 project in Louisiana, a significant move after the project experienced delays under the previous administration.
The Energy Department’s forthcoming authorization will allow Venture Global to export LNG to countries without free-trade agreements with the United States, the report said, citing people familiar with the matter. This decision is part of President Donald Trump’s broader strategy to enhance U.S. gas exports, which includes a license for Commonwealth LNG and permit extensions for two other projects.
The CP2 project is expected to produce 20 million tons of LNG annually and represents an estimated $28 billion investment. While Venture Global has not yet made a final investment decision on the project, the conditional approval signals a significant shift in policy from President Joe Biden’s administration, which had paused the issuance of new LNG export permits in January 2024.
The approval is based on the government’s determination that LNG sales from CP2 will provide economic benefits for the U.S., contribute to the diversification of global natural gas supplies, and enhance energy security for U.S. allies. Venture Global has countered environmental concerns by claiming the project could replace 33 coal-fired power plants, preventing the release of approximately 140 million tons of greenhouse gases annually.
President Trump’s decision to rescind Biden’s moratorium on LNG export permits on his first day in office has paved the way for this development. The CP2 project’s authorization is particularly notable as it had been a focal point for climate activists who lobbied the Biden administration to block the venture, citing its potential to produce greenhouse gases equivalent to adding 1.8 million gasoline-fueled cars to the roads.
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