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Tuesday, November 12, 2024

Texas leaders criticize federal court ruling on liquefied natural gas permits

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Senator Ted Cruz | Senator Ted Cruz Official Website

Senator Ted Cruz | Senator Ted Cruz Official Website

U.S. Senators Ted Cruz and John Cornyn, alongside Cameron County Judge Eddie Treviño Jr., have voiced their concerns regarding a recent decision by the U.S. Court of Appeals for the D.C. Circuit. The court vacated permits for liquefied natural gas (LNG) export facilities in South Texas, a move that has significant implications for the state's energy sector.

In an op-ed published in the Rio Grande Guardian, the Texas officials expressed their disapproval of what they see as federal overreach affecting Texas energy interests. They emphasized their commitment to defending Texas energy through legislative measures such as the Cruz-Cornyn Protect LNG Act. This act aims to prevent courts from vacating previously authorized LNG permits, establish clear jurisdiction for LNG lawsuits, and expedite court decisions in related cases.

The officials stated: “Let’s not allow misguided federal policies—or, worse, misapplied decisions from judges who preside over courts outside of Texas—to undermine Texas energy.” They underscored the importance of standing up for local workers and communities benefiting from LNG projects.

The op-ed highlighted America's transformation into a leading exporter of LNG within a decade, driven largely by Texas producers. With global demand for natural gas projected to rise significantly by 2050, they argue that increased investment in America's LNG sector is crucial.

The decision by the D.C. Circuit Court has been criticized for its potential impact on jobs and economic growth in Texas. One project affected is NextDecade's Rio Grande LNG, which was expected to create thousands of jobs and bring substantial investment to South Texas.

The article also noted environmental concerns linked to undermining American LNG production. The authors argued that American standards are among the highest globally and that domestic production is vital for promoting cleaner energy use worldwide.

Cruz and Cornyn introduced the Protect LNG Act in September as a response to protect energy producers from what they describe as politically motivated legal challenges. The senators continue to advocate for this legislation following the appeals court's decision affecting major projects like Rio Grande LNG and Texas LNG.

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