NEW ORLEANS – Top officials, including U.S. Energy Secretary Chris Wright and U.S. Interior Secretary Doug Burgum, visited Louisiana last week as part of an effort to highlight the federal government’s commitment to boosting traditional U.S. energy production and rapidly increasing LNG exports.
During their visit, officials toured the Venture Global Plaquemines LNG export facility in Louisiana alongside Governor Jeff Landry who joined more than 1,000 energy workers to announce an $18 billion investment by Venture Global into the Plaquemines LNG export facility.
The move counters the Biden-era pause on LNG export permits implemented to assess and curtail environmental impacts.
At the site, company CEO Michael Sabel announced the $18 billion expansion that would increase the facility’s maximum production capacity from 27 million to 45 million tons per year by mid‑2027 according to a report by Josie Abugov with Nola.com.
This expansion makes the Plaquemines facility the largest LNG terminal in North America.
In addition to this project, Sabel highlighted the importance of Venture Global’s CP2 (Calcasieu Pass 2) project—a planned expansion located in Cameron Parish. The CP2 project has attracted national attention due to its scale and the environmental opposition it has faced. Although CP2 is still pending final federal permits, Sabel noted that it is “getting ready to launch as soon as we get maybe a couple more permits from the federal government.”
Liquefied natural gas (LNG) is natural gas that has been cooled to roughly –260°F to condense it into a liquid form. This process dramatically reduces the volume of the gas, by about 600 times, making it much easier and more economical to transport over long distances in specialized LNG carriers. Once liquefied, LNG is stored in insulated tanks and loaded onto LNG carriers for shipment to global markets.
While the liquefaction process increases energy density and export feasibility, it is energy-intensive and is a major source of greenhouse gas emissions compared to burning natural gas directly.
The Trump administration’s stance has been to accelerate LNG development while at the same time eliminating or reducing any regulatory barriers. Those in favor of this approach argue that increased LNG production boosts the economy and creates jobs.
Critics point to concerns over methane leaks throughout the production process along with energy-intensive productive methods that potentially offset the benefits.
Louisiana is the epicenter of the U.S. LNG export market, accounting for over sixty percent of the nation’s LNG exports in 2023. Several major companies contribute to this market:
• Venture Global: With its Plaquemines LNG facility and the upcoming CP2 project, Venture Global is a key player.
• Cheniere Energy: Operates major export facilities (such as the Sabine Pass LNG Terminal) that have long been central to U.S. LNG exports.
• Freeport LNG: Another significant contributor to the state’s LNG output.
Louisiana’s LNG exports serve a wide range of international markets. European nations, eager to diversify their energy supplies away from Russian gas, represent a major destination along with several Asian markets that have historically been significant importers of U.S. LNG.
While Venture Global remains optimistic about long-term growth, as expressed by CEO Michael Sabel, market observers point to broader challenges such as fluctuating global demand, logistical hurdles, and ongoing regulatory uncertainties as contributing factors to the short-term decline in Venture Global’s stock performance.
