There is currently a bottleneck in oil production in the Permian Basin due to the lack of transport options for natural gas, a highly marketable byproduct of oil production. As a result, a significant amount of natural gas is being flared off. Efforts are being made to transport this natural gas out of West Texas to the Gulf Coast, where an export facility is needed to send it out to sea.
One such planned export facility, the Rio Grande LNG facility backed by NextDecade, is already under construction in the Rio Grande Valley. However, the project faced a setback last month when a federal appeals court revoked a key authorization for the facility. This decision came after a lawsuit filed by the Carrizo/Comecrudo Tribe of Texas and the Sierra Club, questioning the potential harm to disadvantaged communities by the project’s development.
The disagreement over the project extends to two indigenous tribes in Texas. While the Carrizo/Comecrudo Tribe has long opposed the project and been involved in litigation against it, the Lipan Apache Tribe recently expressed support for the project in an op-ed, citing potential development opportunities. NextDecade has also argued that the court ruling could lead to job losses, billions of dollars in lost investment, and a threat to global energy security, especially with the ongoing conflict in Ukraine.
The Federal Energy Regulatory Commission is conducting a supplemental environmental review and is expected to release a final version by next summer. Meanwhile, NextDecade plans to appeal the federal court’s ruling. The outcome of these legal proceedings will have significant implications for the future of the Rio Grande Valley gas export facility.
Overall, the controversy surrounding the Rio Grande LNG facility underscores the complex challenges associated with energy infrastructure development, environmental concerns, and indigenous rights. The outcome of this legal battle will not only impact the local community and economy but also have broader implications for energy security and environmental sustainability. It is essential to strike a balance between economic development and environmental protection while respecting the rights and concerns of all stakeholders involved.