Construction at the Texas LNG export terminal on the Port of Brownsville waterfront.
Port of Brownsville, Texas, September 6, 2025
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.
The Federal Energy Regulatory Commission has reissued the Final Order authorizing the construction and operation of the Texas LNG export project, approving a construction schedule that targets commercial completion by November 2029. The reissued approval was released on August 21, 2025, roughly three months earlier than previously expected, and is intended to speed the developer toward a year‑end final investment decision.
The reauthorization affirms prior agency findings that the project is consistent with the public interest and keeps existing directives from earlier orders in force. It also followed completion of a final supplemental environmental impact statement that addressed air quality and environmental justice issues raised in prior court proceedings. The regulatory moves clear a significant hurdle for the project company and set a firm milestone for the construction timeline.
The Texas LNG project is being developed by an affiliate of a privately held energy infrastructure group and is designed as a 4 million tonnes per annum (mtpa) export facility on the north side of the Brownsville Ship Channel. The Energy Department permits held by the project allow exports up to 4 mtpa, equivalent to about 204.4 billion cubic feet per year of natural gas.
The developer is targeting a final investment decision by the end of the calendar year and plans to complete construction by November 2029. The engineering, procurement and construction contract is led by a major contractor under a lump‑sum turnkey arrangement. Project design calls for two liquefaction trains with feed gas to be delivered by a planned third‑party pipeline.
The reissued authorization follows a regulatory path that included a court remand and supplemental environmental review. A court had vacated an earlier authorization in 2024 due to the need for a supplemental environmental impact statement; the court later modified that order and sent the project back to the commission without vacating the authorization. The commission completed its supplemental environmental review in late July 2025 and reissued the Final Order in August.
The developer reports that customer purchase commitments are in place at volumes sufficient to support a final investment decision. Named commercial counterparties include a mix of global energy traders, producers and financial firms, as well as a large European utility. The company also notes federal authorizations across its portfolio that total 32.8 million tonnes per annum of LNG capacity in various projects.
The reissued order arrives as the U.S. LNG buildout remains active but faces shifting global demand dynamics. Industry forecasts show the potential for global LNG supply to outpace demand by 2027, a trend that could intensify as other major producers complete large expansions through the end of the decade. Additional long‑distance pipeline expansions could also change flows and reduce spot LNG demand in some markets beginning around 2031.
Domestically, several large U.S. projects are under construction or awaiting final investment decisions, including multi‑billion‑dollar plants and expansions that together could add tens of millions of tonnes of export capacity before 2030. Projects that have recently progressed with construction funding or expansion approvals remain exposed to labor and supply chain pressures that have already delayed some facilities and pushed start dates into later years.
The facility is planned roughly 2.5 miles southwest of a nearby coastal town and about 19 miles northeast of a regional city, sited along a federally managed ship channel. The plan centers on two trains and includes use of electric motor drives as part of the developer’s design to reduce the facility’s emissions profile.
The immediate next steps include closing on offtake and financing to reach a final investment decision by the end of the year. Key risks include changing global LNG demand, competitive supply additions overseas, the potential impact of large pipeline projects shifting flows, and construction‑era labor market constraints that have delayed other major U.S. builds. Meeting the approved construction schedule will depend on execution under the lump‑sum EPC contract and timely delivery of feed‑gas pipeline capacity.
Reissuing the Final Order and confirming a construction deadline restores clarity to the project’s regulatory path and gives the developer a clearer runway to secure financing and complete construction. The action also illustrates how project timelines can be reshaped by court reviews, supplemental environmental work, and coordination among permitting agencies.
Regulators reissued the Final Order authorizing construction and operation of the Texas LNG export facility and approved a construction schedule targeting completion by November 2029.
The project holds Energy Department permits to export up to 4 million metric tons per year, equivalent to approximately 204.4 billion cubic feet of natural gas per year.
A final supplemental environmental impact statement concluded agency analysis of air quality and environmental justice concerns raised in court proceedings, enabling the reissued authorization.
The developer is targeting a final investment decision by the end of the current year, contingent on firming commercial contracts and financing.
Main risks include global LNG oversupply pressure, competitive project delivery elsewhere, labor and supply chain constraints during construction, and timely availability of gas pipeline feed.
| Item | Detail |
|---|---|
| Regulatory action | FERC reissued Final Order and approved construction schedule |
| Order date | August 21, 2025 |
| Target FID | By year‑end |
| Target in‑service | November 2029 |
| Authorized export volume | 4 mtpa (≈204.4 Bcf/year) |
| Design | Two liquefaction trains; electric motor drives included to reduce emissions |
| EPC model | Lump‑sum turnkey led by a major contractor |
| Site | North side of the Brownsville Ship Channel, coastal Texas |
| Portfolio authorization | Developer holds federal authorizations totaling 32.8 mtpa across projects |
| Market context | Industry forecasts point to potential global LNG oversupply by 2027 and major supply additions through 2030–2031 |
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