FACT SHEET: $18.4bn Rio Grande LNG Project and Headwinds

Estimated read time 2 min read

(Energy Analytics Institute, 20.Nov.2024) — Rio Grande LNG (RGLNG) is a LNG export facility located in Brownsville, Texas. At full development RGLNG is expected to deliver 27 million metric tonnes per annum (mtpa) of LNG. 

The RGLNG proposal will supply a more sustainable LNG with lower expected carbon intensity through project design, responsibly sourced gas, and a pledge to use net-zero power, to meet growing global demand for cleaner natural gas, according to the company.

RGLNG’s expected LNG production will deliver energy to heat and cool the equivalent of nearly 34 million US households annually.

The project sits on 984 acres of land on the north shore of the industrial Brownsville Ship Channel and currently employs approximately 1,700 workers with that number climbing to 5,000 in the coming years. The $18.4bn RGLNG project financing for Phase 1 is the largest greenfield energy project financing in US history, highlighting the critical role of US LNG in the global energy transition.

Court ruling creates headwinds

However, an unprecedented court ruling is putting the RGLNG project in jeopardy. 

On 6 Aug. 2024, the US Court of Appeals for the D.C. Circuit vacated the Federal Energy Regulatory Commission‘s (FERC) reauthorization order for the RGLNG facility.

The court ruling has far-reaching implications that threaten all other infrastructure projects subject to federal regulation, RGLNG said 20 Nov. 2024 in an stmt on its website.

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By Editors at Energy Analytics Institute. © Energy Analytics Institute (EAI). All Rights Reserved.

ENERGY ANALYTICS INSTITUTE (EAI) https://energy-analytics-institute.org

Energy Analytics Institute (EAI), formerly LatinPetroleum (dba LatinPetroleum.com), is a Houston-established private organization with a satellite presence in Calgary and Mexico City. Since 1999, EAI has been a leader in energy news coverage of Latin America in particular. Coverage, run out of Latin America, now spans the world and encompasses nearly all energy and energy-related sectors.

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