Highlights:
The United States has approved an $8.2 billion deepwater liquefied natural gas (LNG) export project off the coast of Texas, led by Indian-American entrepreneur Sharad Tak. The project is expected to strengthen US energy export capacity, create thousands of jobs and open up fresh opportunities for long-term energy trade between India and the United States.
The Maritime Administration (MARAD) has approved the application submitted by ST LNG to construct the facility approximately 10.4 miles offshore Matagorda, Texas. Construction is expected to begin in 2027, with operations scheduled to start in 2029, according to the US Department of Transportation.
The approval follows an accelerated licensing process. US Transportation Secretary Sean Duffy said MARAD completed the project's Final Environmental Impact Statement within 410 days, compared with the five years such a process could previously take.
By slashing red tape and modernising our licensing processes, the Trump Administration is delivering a massive economic boom for the people of Texas,” Duffy said.
At full capacity, the deepwater port will have 20 platforms, four floating LNG storage units, four mooring systems and 7.7 miles of pipeline. Its offshore location is expected to move LNG vessel traffic away from congested onshore areas, reducing the risk of vessel collisions and improving maritime safety.
The facility will receive natural gas from the Tres Palacios Natural Gas Storage and Trading Hub and the Williams Markham Gas Processing Plant. Supplies will be transported through an existing Transco pipeline located approximately 5.6 miles northeast of the proposed port.
The project is expected to have an annual LNG export capacity of 8.4 million tonnes. According to the Department of Transportation, it could increase overall US LNG export capacity by 7-9 per cent. It is also expected to support approximately 2,000 construction jobs and up to 855 permanent jobs once operational.
“With approximately USD 8.2 billion in planned investment, 8.4 million tonnes of annual LNG export capacity, and thousands of American jobs supported during construction and operations, ST LNG will contribute to America's energy security,” Tak, founder and CEO of ST LNG, said in a statement.
The approval has also drawn attention to the potential for stronger US-India energy cooperation. Mukesh Aghi, president of the US-India Strategic Partnership Forum, welcomed the development, highlighting its significance for India's efforts to diversify energy supplies.
“As India seeks to diversify its energy supplies and strengthen energy security, projects such as this led by ST LNG can create new opportunities for long-term LNG trade between our two countries,” Aghi said in a statement.
Tak is a first-generation Indian-American entrepreneur who has built and led businesses across technology, manufacturing, energy, broadcasting and hospitality.
The approval comes around 10 months after Duffy announced that MARAD would assume responsibility for deepwater port licensing from the US Coast Guard. The move was intended to streamline environmental reviews and speed up the approval of new projects.
For ST LNG, the approval marks a significant step towards developing a major offshore export facility. Beyond its economic impact on Texas, the project could strengthen America's posi
