A pair of liquefied natural gas projects in Texas suffered a major legal setback Tuesday after a federal appeals court tossed out their authorizations.
The U.S. Court of Appeals for the District of Columbia Circuit ordered the Federal Energy Regulatory Commission to reconsider how disadvantaged communities could be harmed by the development of Texas LNG, as well as Rio Grande LNG and its Rio Bravo pipeline.
“We appreciate the significant disruption vacatur may cause the projects,” said Judge Brad Garcia, writing the opinion for the court. “But that does not outweigh the seriousness of the Commission’s procedural defects.”
This is the second time the D.C. Circuit has ordered FERC to redo parts of its National Environmental Policy Act analysis of the two gas export terminals, but it is the first ruling concerning these projects that directs the commission to begin its review from scratch.
