FERC Reissues Final Order for Texas LNG as Project Gains Momentum

Port of Brownsville, Texas, September 6, 2025

News Summary

The Federal Energy Regulatory Commission reissued the Final Order authorizing construction and operation of the Texas LNG export facility at the Port of Brownsville, clearing a major regulatory hurdle and accelerating the developer’s path to a targeted final investment decision before year‑end. The reauthorization follows a supplemental environmental review and sets a construction completion target toward the end of the decade for the two‑train, 4 mtpa terminal. Owners report offtake commitments sufficient to support FID while a major EPC contractor leads construction. The decision comes amid concerns about potential global LNG oversupply and construction and financing risks.

FERC Reissues Final Order for Texas LNG; Project Gains Momentum as Global Market Faces Oversupply Risks

The Federal Energy Regulatory Commission has reissued the Final Order authorizing the construction and operation of the Texas LNG export facility in the Port of Brownsville, Texas. The action, completed ahead of schedule, clears a major regulatory hurdle and puts the developer on a faster path toward a targeted year-end final investment decision while setting a construction completion date of November 2029.

Key regulatory and project milestones

The reissued authorization follows a supplemental environmental review addressing air quality and environmental justice matters raised in earlier court proceedings. The reauthorization affirms prior determinations that the project is not inconsistent with the public interest and leaves existing Commission directives in place. The Commission also approved the project’s construction schedule and granted an extension for the start of operations to November 2029.

The Texas LNG project is being developed by an affiliate of a private developer and is planned as a 4 million metric tons per annum export terminal, using two liquefaction trains and feed gas supplied through a third‑party pipeline. The export authorization from the Energy Department covers up to 4 mtpa, equivalent to roughly 204.4 billion cubic feet per year of natural gas. The engineering, procurement and construction work is led by a major EPC contractor under a lump-sum turnkey arrangement.

Commercial and development status

Project owners report that customer offtake commitments have been secured in volumes sufficient to support a final investment decision. Named buyers include major energy companies, global trading houses and a large European utility. The Texas site is one component of a broader portfolio of federally authorized export capacity held by the developer, totaling 32.8 million tonnes per annum across multiple projects.

Why this matters now

The early reissuance of the Final Order accelerates the developer’s schedule in the second half of the year and is intended to position the project to reach a final investment decision before year‑end. The approval and schedule clarity are especially important as the U.S. export sector faces a mix of strong near‑term construction activity and longer‑term market uncertainty.

Market context and longer‑term risks

The U.S. has rapidly expanded its liquefied natural gas export infrastructure and is now a world leader in exports. However, industry analysis warns of a potential global oversupply starting as soon as 2027. Additional new capacity being brought online worldwide, completion of large buildouts in key producing countries by 2030, and major pipeline expansions that could shift more gas supply to large importers by 2031 all add to the risk that supply will outpace demand in coming years. One large pipeline expansion has been estimated by analysts to have the potential to displace as much as 40 million metric tons of LNG demand annually.

Within the U.S., several projects remain under construction or awaiting final investment decisions. Combined, four projects still awaiting FID could add roughly 63 million tons per year of export capacity. Meanwhile, more than $35 billion in plants already under construction face challenges including a tight construction labor market that has pushed some start dates back and increased overall project risk. One large project that was delayed attributed its slip to worker shortages and the bankruptcy of a contractor, illustrating how labor and contractor issues can affect timelines and costs.

U.S. projects to watch

• Louisiana LNG — A major developer announced a multibillion‑dollar final investment decision and is building a facility in Calcasieu Pass, targeting commercial start by 2029.
• Corpus Christi LNG expansion — An energy company approved a $2.9 billion expansion that would add two production trains, with new trains expected toward the end of the decade and combined capacity rising to about 30 mtpa after efficiency gains.
• CP2 — A third export facility under development with a multi‑billion price tag is due to start in 2027 after overcoming earlier permitting delays.
• Rio Grande LNG expansion — The first 18 mtpa phase is under construction, with developers seeking funding for two additional trains that would add around 12 mtpa; contractor arrangements and funding commitments are time‑sensitive.
• Port Arthur expansion — A two‑train project under construction is being evaluated for a second phase that would double capacity, with timing for a final investment decision still open.
• Commonwealth LNG — A private equity‑backed project is targeting a near‑term final investment decision on its first phase near Cameron, Louisiana.
• Lake Charles LNG — A developer plans to decide on its Lake Charles project by the fourth quarter, although full capacity contracting is not yet complete.

Remaining obstacles and considerations

Even with regulatory clearance, developers face several uncertainties before construction and commercial operation: securing financing and long‑term contracts, managing construction risks in a tight labor market, meeting environmental and community conditions imposed by regulators, and navigating a global market that may see demand growth slow or decline relative to new supply. Court remands and supplemental environmental reviews have delayed projects in the past and remain a factor for developers planning long‑term buildouts.

The reissued authorization for the Texas LNG project is an important procedural win that narrows the regulatory path forward. It also arrives as the industry evaluates whether the current wave of global LNG capacity additions will be absorbed by demand, or whether some projects will face strained markets and financing challenges in the latter half of this decade and early 2030s.

Contact

More detailed project documentation and regulatory filings are available from the project developer and federal energy agencies for those seeking primary source materials and official records.

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FAQ

Key project and market features

Feature	Detail
Regulatory action	Reissued Final Order authorizing construction and operation; construction schedule approved
Project capacity	4 million metric tons per annum (two trains)
Export permit	Up to 4 mtpa from Energy Department permits (equivalent to ~204.4 Bcf/yr)
Construction completion target	November 2029
FID target	By year‑end
EPC	Major EPC contractor under lump‑sum turnkey contract
Customer commitments	Offtake agreements reported sufficient to support FID
Portfolio authorization	Developer holds federal authorizations totaling 32.8 mtpa across projects
Market risks	Potential global oversupply from late 2020s; major international buildouts and pipeline expansions could pressure demand

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Additional Resources

• National Law Review: FERC affirms Texas LNG export project remand
• Wikipedia: Texas LNG
• Inspenet: FERC grants approval for the construction of the Texas LNG project
• Google Search: Texas LNG project
• Business Wire: FERC Provides Accelerated Final Order for Texas LNG
• Google Scholar: Texas LNG FERC
• Pipeline & Gas Journal: Texas LNG targets final investment decision by December
• Encyclopedia Britannica: liquefied natural gas
• Oil & Gas Journal: Texas LNG receives FSEIS from FERC
• Google News: Texas LNG