Federal Court Sends Louisiana LNG Terminal Project Back to Regulators

A liquefied natural gas tanker is guided by tug boats at the Cheniere Sabine Pass LNG export unit in Cameron Parish, Louisiana, on April 14, 2022. Marcy de Luna/Reuters

A U.S. court has ordered federal regulators to reevaluate their approval of Commonwealth LNG’s Louisiana liquefied natural gas project.

On July 16, the U.S. Court of Appeals for the District of Columbia Circuit ordered the Federal Energy Regulatory Commission (FERC) to reassess the impact of greenhouse emissions after a handful of environmental groups sued to block the project.

The environmental groups challenged FERC’s authorization of the project, arguing the agency did not “reasonably assess” the National Environmental Policy Act or Natural Gas Act requirements when the project was approved in November 2022.

The court said it agreed in part.

“The Commission inadequately explained its failure to determine the environmental significance of the project’s greenhouse gas emissions, and it failed to adequately assess the cumulative effects of the project’s nitrogen dioxide emissions,” wrote Judge Brad Garcia, who authored the court’s decision. “The Commission did, however, satisfy its obligation to consider alternatives to the project.”

Commonwealth LNG did not respond to The Epoch Times’ request for comment before publication.

If approved, the project is expected to ship 9.3 million tons of liquefied natural gas (LNG) per year from Cameron, Louisiana, starting in 2027, according to a news release late last year.

Commonwealth LNG would just be one of eight terminals that are part of the LNG plan for Southwest Louisiana.

“We think it ’reasonably likely' that, on remand, the Commission can redress the defects in the GHG-emissions and cumulative effects analyses and still authorize the Project,” wrote Judge Garcia.

The judge heard arguments in the case in February along with Judge Karen Henderson.

The plaintiffs in the combined lawsuits include Healthy Gulf, the Sierra Club, the Louisiana Bucket Brigade, the Center for Biological Diversity, and the Turtle Island Restoration Network.

Sierra Club attorney Nathan Matthews, who argued the case, said the court’s decision was a win for those living in the communities near the project.

“FERC’s own modeling shows that air pollution in the area will exceed national standards,” Mr. Matthews said in a statement.

Mr. Matthews said FERC now has a chance to consider the “full scope of air pollution and greenhouse gas emissions” and reverse its decision for the welfare of those he claims would be impacted by the LNG project.

“The court affirmed that FERC can’t keep making the problem worse by approving new projects without first considering the cumulative impact on the health and wellbeing of surrounding communities, in addition to broader contributions to climate change,” Mr. Matthews said.