Liquified natural gas (LNG) projects increase greenhouse gas emissions from the upstream extraction and transport of natural gas to the facility and the ultimate market use of the gas, but they can also release harmful pollution.
In the case of Venture Global’s Calcasieu Pass LNG project, a design approach intended to reduce construction costs has led to pollution emissions that have resulted in air permit violations and heightened public health risks. At the same time, problems with the project have extended the commissioning period even as the company has launched exports on the spot market.
The lost opportunity for contract-rate profits for the LNG facility’s long-term customers is a factor that potential offtakers should consider regarding projects that plan to take a similar approach to construction.
This report explains how the Calcasieu Pass LNG project and also subsequent Venture Global projects following the same construction design pose issues for both community residents and corporate customers.
Source: IEEFA