Court decision lets big LNG project proceed

This is an artist’s rendering of NextDecade’s Rio Grande Liquefied Natural Gas Export Terminal currently under construction in Brownsville. (Courtesy Rendering)

A Washington court’s OK for the NextDecade Co. to proceed with the construction of its $18.4-billion Rio Grande Liquefied Natural Gas Export Terminal at Brownsville bodes well for the entire American LNG industry, which had hit a roadblock with the Biden administration’s year-long ban of new terminals till it was rescinded.

That’s according to the Permian Basin Petroleum, Texas Independent Producers & Royalty Owners and Texas Oil & Gas associations, which laud the U.S. Court of Appeals for the District of Columbia for revising its ruling last August to overturn the Federal Energy Regulatory Commission’s approval for the initial phase of the Rio Grande LNG project.

With natural gas bringing $15.34 per thousand cubic feet in Europe or about four times the U.S. price, other terminals currently under construction are the Plaquemines LNG in Louisiana, Corpus Christi Stage III, Golden Pass LNG at Sabine Pass and Port Arthur LNG.

Eight terminals are operating along the Gulf Coast while 18 have been approved but are not yet under construction with industry forecasters saying the European market will stay strong.

PBPA President Ben Shepperd said the Permian Basin greatly benefits from a clear and consistent regulatory environment free from the popular political whims of the day.

“This stability is essential for critical infrastructure projects such as LNG terminal permitting, which unlocks new markets for the region’s oil and gas production,” Shepperd said. “We would certainly hope that this stability encourages the development of oil and gas export terminals like the ones that have brought American products to our allies in times of need.

“These exports not only strengthen global energy security, they also provide significant economic and environmental benefits to nations seeking reliable, cleaner fuel sources.”

TIPRO President Ed Longanecker said the recent court ruling provides greater clarity and stability for NextDecade’s Rio Grande LNG project and supports the broader LNG industry’s continued buildout.

“This decision helps alleviate some of the uncertainties that previously surrounded the project, particularly regarding environmental and legal challenges,” Longanecker said.

“This is why we continue to advocate for a clearer, more predictable and permanent permitting process from the federal government, enabling the many LNG projects operating and underway across Texas and the Gulf States to proceed with development, promising significant job creation and economic growth to the region for years to come.”

TXOGA President Todd Staples said the world is literally at the doorstep of Texas in energy need and Texans are responding despite manmade roadblocks.

“Allowing for the continued construction of NextDecade’s Rio Grande LNG Export Terminal was the only logical conclusion to this unnecessary challenge designed to stop oil and natural gas,” Staples said.

“Revising this judgment along with U.S. Energy Secretary Chris Wright’s reversal of the previous administration’s pause on LNG export permit approvals indicate a bright future for Texas LNG under the current administration and position our state to continue as a global energy leader.”