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, Clearing Way for Glenfarne to Push Toward Year-End Investment Decision

Federal regulators have reissued the final authorization for the Texas LNG export project, accelerating the developer’s schedule and clearing a major legal and environmental hurdle. The reissued order, released on August 21, 2025, also approves a construction timetable that calls for commercial startup by November 2029. The developer is aiming for a final investment decision (FID) by the end of the year.

Key project permissions and schedule

The project holds federal export permissions for up to 4 million metric tons per year, equal to about 204.4 billion cubic feet per year of natural gas. The terminal is planned on the north side of the Brownsville Ship Channel and is designed as a two-train liquefaction facility. A third-party pipeline is expected to supply feed gas. A large engineering, procurement and construction contract has been awarded on a lump-sum turnkey basis to a major contractor to lead delivery of the plant.

Commercial progress and partners

The developer reports it has secured customer offtake commitments sufficient to support an FID. Named buyers and trading firms are among the parties listed in project paperwork and company releases. The project is described by its owner as part of a larger federally authorized LNG portfolio totaling 32.8 million tonnes per annum.

Regulatory and legal background

The reissued authorization follows a multi-step regulatory and judicial review process. The federal regulator completed a supplemental environmental impact statement addressing air quality and environmental justice issues raised during court review. That action implemented a court remand that had previously vacated an earlier authorization and was later modified to a remand without vacatur, prompting the supplemental study and reauthorization. The regulator reaffirmed that the project is consistent with the public interest and maintained the directives from prior orders. The commission also granted an extension for the start of operations, moving the deadline from November 2024 to November 2029.

Where the project fits in the wider U.S. LNG buildout

The Texas project comes as many U.S. developers race to build export capacity while market conditions remain favorable. An independent industry analysis group projects global LNG supply could exceed demand by 2027, with major producer buildouts and pipeline expansions expected to add supply through 2031. Those analyses note that a large producing state is slated to finish a long-running expansion by 2030, and a major pipeline build could begin sending additional volumes to Asia by 2031, potentially displacing up to 40 million metric tons of LNG demand annually.

At the same time, several U.S. projects are still weighing final investment choices. Four projects with a combined export capacity of about 63 million tons per year remain without final funding decisions. About $35 billion in plants are already under construction but face schedule pressure from a tight labor market and supply-chain strains. One high-profile U.S. project saw its first commercial start slip by a year due to worker shortages and a contractor bankruptcy, underscoring execution risks on large builds.

Projects and milestones to watch

• Louisiana terminal: A major developer announced a multibillion-dollar FID and expects first gas toward the end of the decade.
• Corpus Christi expansion: An operator approved a nearly $3 billion expansion to add two production trains, with start-up slated toward the decade’s end.
• CP2: Another large Gulf Coast project, budgeted in the low-double-digit billions, is scheduled to start in 2027 after earlier permitting pauses and subsequent regulatory clearance.
• Rio Grande expansion: The first 18 million-ton phase is under construction; the developer is seeking funding for two additional trains that would add 12 million tons per year.
• Port Arthur, Commonwealth, Lake Charles: These projects are at various stages of seeking final investment decisions and contracting capacity.

What happens next for the Texas project

With the regulator’s reissued order and an approved construction schedule, the developer’s next steps include finalizing financing, completing detailed engineering, and moving into full site construction under the lump-sum EPC contract. The reauthorization also puts environmental conditions and prior directives back into effect, so ongoing compliance work and permitting follow-through will remain important.

Market and execution risks

The project faces two broad sets of risks. Market risk stems from analyst projections of growing global supply that could pressure prices and buyer appetite for new capacity after 2027–2031. Execution risk includes labor shortages, contractor performance issues and supply-chain constraints that have already affected other large U.S. builds. Those risks could influence final investment timing and future project economics.

Bottom line

The regulator’s early reissued authorization gives the Texas LNG project a clearer path to construction and a targeted commercial start in 2029. The developer is pushing for a year-end investment decision, but market oversupply projections and execution pressures across the U.S. buildout will remain key factors for the final go-ahead and long-term returns.

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FAQ

Key project features at a glance

Feature	Detail
Regulatory action	Final authorization reissued by federal regulator on August 21, 2025
Export capacity	4 million metric tons per year (approx. 204.4 bcf/year)
Construction completion target	November 2029
Developer goal	Final investment decision targeted by year-end
Project layout	Two liquefaction trains; terminal on Brownsville Ship Channel
EPC delivery	Lump-sum turnkey contract with a major contractor
Portfolio context	Part of a federally authorized portfolio totaling 32.8 mtpa
Market backdrop	Industry analysis warns of potential global oversupply starting 2027 and further supply growth through 2031

Deeper Dive: News & Info About This Topic

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