**Federal Appeals Court Quashes FERC Approval for Groundbreaking Texas LNG Project**
In a significant development for the U.S. oil and gas industry, the 4-million tonne per year (tpy) liquefied natural gas (LNG) plant under construction in Texas has seen its Federal Energy Regulatory Commission (FERC) certificate revoked by a federal appeals court. This decision marks the latest in a string of court-ordered revocations affecting major energy projects in the country.
The U.S. Court of Appeals for the DC Circuit, in a ruling issued on August 6, 2024, vacated the FERC-approved certificate of Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition LLC. This move comes as part of a broader trend where environmental regulatory agencies are being held accountable for their environmental assessments.
Texas LNG, a proposed facility sited at the Port of Brownsville, has been embroiled in a protracted legal battle since its initial authorization by FERC in 2019. The project was appealed to the DC Circuit and subsequently remanded back to FERC, a process that spanned 1.5 years.
The recent ruling stems from the court’s determination that FERC failed to meet its obligations under the National Environmental Policy Act (NEPA). The court specifically highlighted that the commission did not conduct a supplemental environmental review to address critical environmental justice and air quality issues. This procedural deficiency, deemed “serious” and “flawed,” prompted the court to remand the case back to FERC for further consideration.
“The nature and severity of the flaws in the Commission’s second effort to properly assess the projects necessitate this action,” wrote Judge Bradley Garcia for the three-judge panel. “Given the circumstances, we vacate the reauthorization orders and remand to the Commission for further examination.”
This decision is likely to delay Texas LNG’s final investment decision, which was scheduled for later this year. ClearView Energy Partners noted in a statement