Venture Global gets the permitting go-ahead for Calcasieu Pass 2, and Greenpeace must pay pipeline giant Energy Transfer more than $660 million.
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Wednesday, 26 March 2025 / Edition 51

For American college sports fans, the past weekend kicked off the March Madness basketball tournament, when 64 teams battle for the national championship title. I enjoyed watching young athletes compete wholeheartedly for their schools. The tournament resumes this weekend!

 

Now, let’s shoot into two energy business news bytes.

Shangyou-Nie-Headshot-Signature

 

Shangyou Nie

 

Editor, Well Read

The DOE Approves a Fifth LNG Permit

lng tanker_GreenOak

GreenOak/Shutterstock.com

The U.S. Department of Energy approved Venture Global LNG’s application to export gas to non-foreign trade agreement (FTA) countries from Calcasieu Pass 2 (CP2). This is the fifth LNG-related approval since the Trump administration has taken office.

 

Previous approvals include:

  • Commonwealth LNG (14 February)

  • Moving barriers for LNG as bunkering fuel (28 February)

  • Granting more time to commence LNG exports at Golden Pass (5 March)

  • Delaying the start of exports at Delfin LNG (10 March)

Project background:

  • The Biden administration approved CP2’s construction in June 2024. In November, it ordered a new environmental analysis be completed before Biden left office.

  • A draft of the new environmental analysis is in a public comment period until 31 March 2025.

  • In early March, Venture Global announced a $2 billion cost increase for the CP2 LNG project.

  • Venture Global said that its CP2 project will commence commercial operations on 15 April.

  • Venture Global LNG plans to build its export capacity to 104.4 million tons per annum by 2034 via five projects.

  • CP2 has long-term contracts with ExxonMobil, Chevron, JERA, New Fortress Energy, Inpex Corp., China Gas, SEFE, and EnBW.

Company background:

  • Venture Global LNG went public on 24 January at 40 percent below its targeted $110 billion market cap.

  • Two months later, Venture Global’s share price was $11.78, down 51.6 percent. Its market cap was $28 billion. According to analysts, the poor stock price performance is partially due to revenue decline and operational red flags.

  • Venture Global said the costs to complete the project may increase further with potential tariff-related cost increases.

  • Investors are also reportedly concerned about Venture Global’s arbitration with customers Shell and BP, in which the two majors accused Venture Global of not honoring its long-term supply contracts and selling earlier LNG cargos to high-priced spot markets.

What they are saying: “The benefits of expanding U.S. LNG exports have never been more clear, and I am proud to be taking action to support the American people and our allies abroad with more affordable, reliable, secure American energy,” Wright said in a DOE statement.

 

What to watch:

  • Will Venture Global be able to take FID for Phase 1 of CP 2 project sometime in Q2 or Q3?

  • How will the arbitration between Venture Global LNG and Shell and BP end? What effect will the ruling have on future Venture Global LNG customers?

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Greenpeace Ordered to Pay $660 Million to Energy Transfer

Gavel and board of directors Axios AI

Image by Axios AI

A North Dakota jury found Greenpeace liable for defamation and trespassing in connection with protests against the Dakota Access Pipeline project. Greenpeace was ordered to pay more than $660 million.

 

Greenpeace said that it will appeal to the North Dakota Supreme Court. It has also filed a lawsuit against Energy Transfer in the Netherlands.

 

The latest:

  • A nine-person jury in Morton County, North Dakota found Greenpeace International and two Greenpeace entities in the United States liable for “defamation, conspiracy, and physical damage” to the Dakota Access Pipeline.

  • The jury deliberated for two days before awarding damages of more than $660 million—more than twice the initial filing.

  • According to the Wall Street Journal, the lawsuit was initially filed in 2017 by pipeline giant Energy Transfer.

  • The lawsuit centers around 2016 protests in which Greenpeace, Native American tribal groups, and other activists camped onsite to block the pipeline’s construction. The protests lasted nearly a year.

  • Greenpeace denies the allegations, saying it played a minor role in the protests and did not participate in any violence.

  • The 1,172-mile pipeline was built to transfer crude oil from North Dakota to Illinois. It was completed in 2017 and cost $3.8 billion.

About Energy Transfer:

  • Dallas-based midstream giant Energy Transfer was founded in 1996 by Kelcy Warren and Ray Davis, now the majority owner of the Texas Rangers.

  • Energy Transfer has acquired several competitors and now has more than 125,000 miles of oil and gas pipelines and assets.

  • Its market cap is $64.7 billion.

About Greenpeace:

  • Greenpeace USA was established in 1975. It’s coordinated by Greenpeace International based in Amsterdam, the Netherlands and has offices in Washington, D.C. and Oakland, California.

  • According to 2023 financial statements, Greenpeace USA has net assets of $4 million.

Legal background:

  • Energy Transfer initially filed the lawsuit in the District Court of North Dakota. On 15 February 2019, the U.S. District Court dismissed the case.

    • Energy Transfer then filed a similar lawsuit in a North Dakota state court in 2019.

    • Energy Transfer sought $300 million in damages, including “delays, security measures, and reputational and physical damages.”

    • A payment of this size could threaten Greenpeace ability to continue its U.S. operations.

  • Energy Transfer alleges that Greenpeace was instrumental to the protests by spreading misinformation, training thousands of protesters, and donating money and supplies.

  • On 11 February 2025, Greenpeace International filed a lawsuit in a Dutch court in Amsterdam against Energy Transfer.

What they’re saying:

  • “We’ve got to stand up for ourselves,” said Warren in a video deposition, alleging that protesters had created “a total false narrative” about Energy Transfer, and “It was time to fight back.”

  • “This case should alarm everyone, no matter their political inclinations. It’s part of a renewed push by corporations to weaponize our courts to silence dissent,” said Sushma Raman, interim executive director for Greenpeace USA.

What to watch:

  • This case has important implications for the interaction between environmental groups and the corporate world, especially in the oil and gas industry.

  • Will Greenpeace USA survive this lawsuit?

  • Will Greenpeace win its case in the Netherlands?

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