$8.2 Billion LNG Megaproject Approved Off the Texas Coast

The U.S. Maritime Administration has approved the deepwater port license application for ST LNG’s proposed $8.2 billion liquefied natural gas export terminal off the Texas coast.

Announced October 28, the decision advances a platform-based development in federal waters offshore Matagorda County. Federal environmental records place the facility approximately 10.4 nautical miles from the coast, in the Brazos Outer Continental Shelf’s Block 476, where water depths range from approximately 65 to 72 feet.

At full build-out, the terminal would include four liquefaction systems, each rated at 2.1 million metric tonnes annually. Together, they would provide 8.4 million metric tonnes of annual LNG production capacity.

The offshore infrastructure program includes 20 platforms, four floating LNG storage units, four mooring systems and approximately 7.7 miles of pipeline. The facility would receive domestic natural gas, treat and liquefy it offshore, then transfer LNG to export carriers.

Feed gas would come from supply sources including the Tres Palacios Natural Gas Storage and Trading Hub and Williams’ Markham Gas Processing Plant. The terminal would connect with existing Transco pipeline infrastructure northeast of the site.

The arrangement uses established gas infrastructure to supply the offshore plant. The proposed action described in Texas coastal-review documents does not include new or modified onshore facilities upstream of the pipeline connection.

Construction is expected to begin in 2027, with the port coming online in 2029. Environmental-review documents describe phased delivery, with successive construction phases staggered by 18 months. The operational target therefore should not be read as confirmation that the entire four-system development will be complete in 2029.

Federal officials project approximately 2,000 construction jobs and up to 855 permanent positions. The Department of Transportation estimates the completed facility could increase U.S. LNG export capacity by approximately 7–9%.

MARAD completed the project’s final environmental impact statement in 410 days, according to the department. The review involved the U.S. Coast Guard, other federal agencies and the State of Texas, covering the proposed terminal’s environmental, safety and security requirements.

The offshore location is intended to move LNG vessel activity away from congested onshore waterways. Construction would bring together marine structures, gas-processing equipment, floating storage, pipeline connections and vessel-loading infrastructure.

The October approval marks a major permitting milestone. Construction has not commenced, and the announcement does not identify a principal EPC contractor or a complete construction delivery team.