The US Department of Transportation has approved a licence application for the construction and operation of an $8.2bn deepwater liquefied natural gas (LNG) port by ST LNG, to be built around 10.4 miles offshore Matagorda, Texas.
The decision, announced by Transportation Secretary Sean Duffy, follows a review period that department officials say is the shortest for a deepwater port project in over two decades.
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The Maritime Administration (MARAD) oversaw the licensing process after being directed to assume full control and streamline procedures.
According to the department, the application review and completion of the Final Environmental Impact Statement took 410 days, which is nearly 3.7 years faster than the historical average and represents a 70% cut in review time.
Construction of the planned offshore facility is expected to start in 2027, with operations projected to commence in 2029.
The site will include four LNG liquefaction systems designed to deliver a combined capacity of 8.4 million tonnes per annum (mtpa) at full scale.
The port will comprise 20 platforms, four floating storage units, four mooring systems, and 7.7 miles of pipeline.
Feed gas will be delivered through the existing Transco pipeline, supplied by the Tres Palacios Natural Gas Storage and Trading Hub and the Williams Markham Gas Processing Plant.
Secretary Duffy said: “By slashing red tape and modernising our licensing processes, the Trump Administration is delivering a massive economic boom for the people of Texas.
“This project will unleash American energy – ensuring demand for Texas’ bountiful natural gas and the men and women who extract it continues to grow.
“Building this state-of-the-art port will also generate thousands of jobs in the Gulf and cement our nation’s status as the number one energy exporter in the world.”
Officials anticipate the project will support 2,000 construction jobs and up to 855 permanent positions.
The port is projected to expand US LNG export capacity by 7-9% and is intended to direct vessel traffic away from busy onshore terminals, reducing the risk of collisions and related safety issues.
The review involved cooperation with the US Coast Guard, relevant federal agencies, and the State of Texas to ensure safety and security standards were met.
In March 2026, Baker Hughes was engaged by ST LNG to provide key gas compression and power generation technology for the proposed export terminal.
The technology provider will supply two LM6000PF aeroderivative gas turbine-driven centrifugal compressor trains and three NovaLT 16 gas turbine generator packages, supporting the project’s initial 2.1mtpa phase as part of a four-phase plan.
Baker Hughes expects to record orders as the project progresses towards a final investment decision.
Earlier this month, the US Federal Energy Regulatory Commission (FERC) introduced its initial blanket authorisation initiative for LNG facilities, following unanimous support for a Notice of Proposed Rulemaking (NOPR).
The proposal would allow certain approved activities at LNG sites to proceed without the need for separate authorisation orders from FERC under Sections 3 and 7 of the Natural Gas Act.
