Gulf of Mexico
via NextDecade Corp

TX - NextDecade Abandons Galveston Bay LNG Project Over Regulatory Issues

NextDecade Corp. has dropped plans for a liquefied natural gas (LNG) export terminal on the Texas City Ship Channel, saying the site is partially under the control of the federal government and not suitable for the project.

The U.S. Army Corps of Engineers advised the company that a portion of the proposed Galveston Bay LNG site is federally regulated under navigation servitude, which indirectly extends powers to the government to oversee commerce under the Constitution. Part of the site serves as an active dredged material placement area for the Texas City Ship Channel.

“On account of the potential for prolonged uncertainty around the prospect of release of Federal Navigation Servitude” by the Army Corps, “NextDecade has elected to forfeit the Galveston Bay LNG site and will no longer make lease payments to the site’s landholders, the Texas General Land Office and the City of Texas City,” the company said.

NextDecade said the project can’t be constructed without the Army Corps requesting that Congress authorize the release of its rights over the dredging area.

NextDecade said it would also withdraw Galveston Bay LNG from the Federal Energy Regulatory Commission’s pre-filing process. The company has also requested that the U.S. Department of Energy terminate its June 2018 authorization to export LNG from the terminal.

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