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ST LNG deepwater port wins federal license for Texas export terminal

ST LNG deepwater port wins federal license for Texas export terminal

Built World

Maritime Administration approved the $8.2 billion project in 410 days, the fastest deepwater port license review in more than two decades

Yesterday: MARAD approves ST LNG deepwater port license

Overview

Updated 2 hours ago

The Maritime Administration approved a deepwater port license for the $8.2 billion ST LNG export terminal off the Texas coast on October 28. The decision clears the main regulatory hurdle for the facility, located about 10.4 miles offshore Matagorda, which will export 8.4 million tonnes of liquefied natural gas per year. Construction is slated to begin in 2027, with the port online in 2029.

The license arrived in 410 days, roughly 70% faster than the historical average for deepwater port reviews. Transportation Secretary Sean Duffy credited the speed to the Maritime Administration's takeover of licensing from the Coast Guard, which he said cut nearly 3.7 years off what has historically been a multi-year process.

Why it matters

If the schedule holds, the terminal adds 8.4 million tonnes of annual US LNG export capacity by 2029, expanding shipments to allies and raising the country's export capacity by 7 to 9 percent.

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Key Indicators

$8.2 billion
Project cost
Total investment for the deepwater LNG terminal and associated infrastructure.
8.4
Export capacity (million tonnes per year)
Four liquefaction units, each rated at 2.1 million tonnes per year.
410 days
Environmental review time
Time from streamlined review to final environmental impact statement, about 3.7 years faster than the historical average.
70%
Reduction in review time
The claim from the Department of Transportation comparing the new process to historical deepwater port review times.
2,000
Construction jobs
Expected peak construction workforce, plus up to 855 permanent jobs at full operation.

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People Involved

Sean P. Duffy
Sean P. Duffy
US Transportation Secretary
Announced the ST LNG license approval at Port Houston on October 28, 2026

Organizations Involved

ST
ST LNG, LLC
Energy development company
License approved, construction targeted for 2027

The applicant proposing the $8.2 billion deepwater LNG export terminal offshore Matagorda, Texas.
Maritime Administration
Maritime Administration
Federal agency
Oversees deepwater port licensing; approved ST LNG license

The Department of Transportation agency that took over deepwater port licensing and approved the ST LNG project.

Timeline

July 2025 October 2026

5 events Latest: Yesterday
Tap a bar to jump to that date

  1. MARAD approves ST LNG deepwater port license

    Latest Decision

    Transportation Secretary Duffy announced the license approval at Port Houston, clearing the way for 2027 construction.

  2. Final environmental impact statement published

    Regulatory

    MARAD announced the final statement covering the project's impacts and alternatives, including a no-action option.

  3. Draft environmental impact statement released

    Regulatory

    Notice of availability for the draft statement and public meeting published in the Federal Register.

  4. MARAD opens environmental review

    Regulatory

    Notice of intent to prepare an environmental impact statement and public scoping meeting published.

  5. ST LNG files license application

    Filing

    Notice of the deepwater port license application published in the Federal Register.

Scenarios

1

ST LNG begins construction on schedule in 2027

Likely Resolves by End of 2027

Discussed by: MARAD, project proponents

With the license secured, ST LNG moves toward a final investment decision, lines up offtake customers and project financing, and breaks ground in 2027. Hiring for the 2,000 construction jobs begins, and the project targets a 2029 startup. The streamlined approval is the main hurdle cleared; the remaining work is commercial.

2

Legal challenge stalls ST LNG construction

Possible Resolves by End of 2027

Discussed by: Environmental advocacy groups, legal observers

Environmental groups could sue over the adequacy of the environmental impact statement under the National Environmental Policy Act, arguing that a 410-day review was too fast to fully assess impacts on the Gulf of Mexico. A lawsuit filed in federal court could delay the construction start while the court reviews the record.

3

Financing and market conditions push back the 2029 startup

Possible Resolves by Q2 2028

Discussed by: Energy trade press

An $8.2 billion terminal requires committed purchase agreements and project financing. If LNG prices weaken or buyers delay long-term contracts, ST LNG could push its construction timeline and the 2029 online date. The license is approved, but the project still needs commercial backing at scale.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2012-2016

Sabine Pass LNG terminal (2012-2016)

Cheniere Energy built the first US liquefied natural gas export terminal in the lower 48 states at Sabine Pass, Louisiana. The project required years of review across the Department of Energy and Federal Energy Regulatory Commission before the first export cargo shipped in 2016. Cheniere sold long-term contracts before construction finished, anchoring the financing.

Then

Sabine Pass proved that US LNG exports could work commercially and launched a wave of terminal proposals.

Now

The US became the world's largest LNG exporter, with more than 100 million tonnes per year of capacity in service and close to another 100 million under construction.

Why this matters now

Sabine Pass set the template for LNG export terminals and showed how approval timelines shape whether projects get built. ST LNG's 410-day review stands in sharp contrast to the multi-year approvals projects like this faced a decade ago.

1974-1981

Deepwater Port Act of 1974

Congress passed the Deepwater Port Act in 1974 to license offshore facilities, responding to concerns about tanker traffic near shore after the 1969 Santa Barbara oil spill. Licensing was administered by the Coast Guard. The first port licensed under the act, the Louisiana Offshore Oil Port, opened for crude imports in the early 1980s and for decades remained one of the only deepwater ports ever approved.

Then

The act created a federal licensing pathway for offshore ports but one that was rarely used.

Now

Deepwater port licenses remained scarce for decades. Moving that authority from the Coast Guard to MARAD, and compressing reviews to 410 days, is a structural change to how rarely-used process works.

Why this matters now

ST LNG is one of only a handful of deepwater ports ever approved under this framework. The project's 16-month review marks a shift in how the licensing process operates, not just in this one approval.

Sources

(7)
+1
US Department of Transportation Maritime Professional Federal Register (91 FR 46826) Construction Review KHOU Houston Newsquawk US Department of Transportation