This follows a suit filed by the Sierra Club, Louisiana Bucket Brigade, and Turtle Island Restoration Network in August 2024.
According to an Ocober 10 ruling signed by district judge Judge Penelope Richard, the Office of Coastal Management under the Louisiana Department of Energy and Natural Resources did not consider several factors when issuing the permit.
The court finds that the LDENR – OCM “failed to consider the secondary and cumulative
impacts, specifically this facility’s impact on climate-related change in the coastal zone, if any, in conjunction with the other LNG facilities in the area.”
Moreover, the LDENR – OCM also “failed to consider environmental justice issues in its basis of decision.”
“Based on the OCM’s failure to consider these two issues, the court hereby remands this case to the OCM, for further proceedings, as may be appropriate. The coastal use permit will be vacated until such time that the OCM has considered these issues in issuing the CUP to Commonwealth and makes a finding that the benefits of this project outweigh the costs to the community,” it said.
Kimmeridge’s Commonwealth told FERC in its newest monthly status report it was notified that its coastal use permit had been vacated and remanded to the Louisiana Department of Conservation and Energy Office of Permitting and Compliance, formerly LDENR-OCM, to fully consider two issues raised during public comment about the proposed project.
The project is “working with our state officials and regulators to resolve this matter as quickly as possible, while ensuring our permit record fully demonstrates the project’s compliance with all regulatory criteria.”
“The project will notify the Commission when the permit is reissued. Site preparation activities will not be initiated until such time,” Commonwealth said.
FID
Commonwealth has not yet taken a final investment decision on its project.
However, the US LNG developer previously said that it plans to decide on the facility by the end of this year.
Last month, Commonwealth received approval from FERC to start initial site preparation activities for its LNG export project.
In June, Commonwealth received the Commission’s final order upholding authorization for its LNG export project.
In addition, Commonwealth recently received the final non-free trade agreement export authorization from the US Department of Energy for its LNG export project.
Commonwealth is also seeking an extension of time from FERC to complete construction of the project and make it available for service until December 31, 2031.
Under the current FERC order, Commonwealth must place the project into service no later than November 17, 2027.
As per the offftake side, the company has entered into long-term sale and purchase agreements with Petronas for 1 mtpa of LNG, Glencore for 2 mtpa of LNG, Jera for 1 mtpa of LNG, and EQT for 1 mtpa of LNG.
Additionally, Commonwealth has recently authorized an order for six Baker Hughes refrigerant turbo compressors required for the liquefaction process of its LNG export project.
The order will be placed by Technip Energies, which Commonwealth announced will lead the engineering, procurement, and construction (EPC) execution of its LNG facility.
