U.S. Again Gives Nod for More LNG

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--After delays in the court, the Federal Energy Regulatory Commission (FERC) on Friday gave preliminary approval for NextDecade Corporation's (NASDAQ:NEXT) (Houston, Texas) Rio Grande LNG project in southern Texas.

The D.C. Circuit Court of Appeals last year overturned approval of the entire Rio Grande facility due to a lack of a suitable environmental impact statement. Plant owner NextDecade in October filed a petition for a rehearing.

On Friday, NextDecade said it had prepared a draft environmental impact statement to address the decision, clearing a regulatory pathway toward approval.

NextDecade plans for a five-train facility that would have a peak processing capacity of 3.73 billion cubic feet per day (Bcf/d). Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from detailed project reports and a plant profile.

With shovels barely in the ground, the company already has plans for three new trains, or liquefaction units, that could add 2.4 Bcf/d to the facility's overall processing capacity.

Commercial operations are expected by February 2027.

The U.S. shipped out its first batch of LNG in 2016 and leapfrogged Australia and Qatar by 2022 to become the world leader in exports of the super-cooled gas. Those exports helped fill a void left by the lack of Russian gas on the European market that came because of sanctions imposed in response to the invasion of Ukraine in 2022.

Data from IIR Energy show the eight operational LNG export terminals in the U.S. were operating at 98% of their peak capacity as of Friday, for a combined 16.3 billion cubic feet in exports. Five years ago, the export level was closer to 6.3 Bcf/d.

U.S. President Donald Trump used executive action to advance LNG since his return to the White House in January.

Two facilities--Delfin LNG and Golden Pass--have secured permit extensions from the Trump administration already this year, while Commonwealth LNG has received a new permit. Extensions were necessary due to delays such as those experienced during the COVID-19 pandemic.

Several of the existing terminals such as Corpus Christi, operated in Texas by Cheniere Energy Incorporated (NYSE:LNG) (Houston), are planning for upgrades that would add to their nameplate capacity. At 2.4 Bcf/d, Corpus Christi is the second-largest LNG export terminal by volume behind Cheniere's Sabine Pass facility in Louisiana.

Federal estimates put the expected average for 2025 at 14 Bcf/d in LNG exports. There was no comment from NextDecade on FERC's recent decision.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).