US Maritime Administration approves ST LNG export terminal off Texas coast

The US Maritime Administration (MARAD) has granted regulatory approval for ST LNG’s proposed $8.2bn offshore LNG export terminal located in Texas, the regulatory authority announced on October 28.

The authorisation is a major hurdle cleared for the development of the 2.1mn tonnes per year (tpy) project that will utilise four liquefaction trains. The proposed facility will be located about 17 km off the coast of Matagorda, Texas in the Gulf of Mexico.

Construction on the project is expected to begin in 2027, with commercial operations slated to begin in 2029.

The offshore project will also require associated maritime infrastructure including 20 platforms, four floating LNG storage vessels, four mooring installations and pipeline system extending about 10 km.

The approval follows MARAD's assumption of responsibility for the federal deepwater port licensing programme and subsequent changes to its application review procedures.

The agency completed its environmental assessment for ST LNG within 410 days, representing a reduction of approximately 70% compared with the previous review timeframe. The department described the decision as its quickest deepwater port licensing outcome in more than two decades.

The review involved coordination with the US Coast Guard, other federal authorities and Texas state officials, with the agencies examining the development's environmental, operational and security requirements.

Feedstock for the proposed terminal is expected to be sourced from the Tres Palacios Natural Gas Storage and Trading Hub and the Williams Markham Gas Processing Plant.

An existing Transco pipeline, situated approximately 8 km from the proposed terminal, will provide the connection for delivering natural gas to the offshore development.

The offshore location is also expected to reduce pressure on shipping routes closer to the Texas coastline by moving LNG carrier movements away from more congested maritime areas.

The licensing decision adds another proposed facility to the expanding US LNG export project pipeline. Developers are seeking to capitalise on international demand for US LNG, particularly as questions remain around Qatar’s reliability as a reliable LNG provider as it makes repairs to its Ras Laffan Industrial Complex that could last five years.