On October 28, the U.S. Maritime Administration approved ST LNG’s application for a deepwater port license for an $8.2 billion, 8.4 mtpa offshore LNG export project about 10.4 miles off Matagorda, Texas.
Published in Brief No. 5 · · Also on LinkedIn ↗
Reviewed by Georges C. Nama, Esq., licensed by the Supreme Court of Texas.
On October 28, 2026, the U.S. Department of Transportation announced that MARAD had approved the deepwater port license application of ST LNG, LLC, which plans an offshore LNG export facility about 10.4 miles off Matagorda, Texas. The project has four liquefaction systems of 2.1 million metric tons per year each, for up to 8.4 mtpa. The full buildout includes 20 offshore platforms, four floating LNG storage units and about 7.7 miles of pipeline. DOT said the final environmental impact statement was completed in 410 days, and it called the review the fastest deepwater port license review in more than two decades. ST LNG said on October 29 that it will receive the license itself once it meets all federal and state requirements, and that it holds DOE authorization to export to free-trade-agreement countries while non-FTA approval is pending. The company is targeting a final investment decision in mid- to late 2027. DOT expects service in 2029; ST LNG targets commercial operations by mid-2030.
This review suggests federal permitting for offshore Gulf LNG can move much faster, which reduces regulatory timing risk for developers and their lenders. The project still has to obtain DOE non-FTA export authority, sign long-term offtake contracts and close project financing before it can take a final investment decision. That gives buyers, EPC contractors and financiers leverage in negotiations over the next year. The Record of Decision, filed in docket MARAD-2025-0096, will set the license conditions that drive construction and operating obligations.
What it means for U.S. companies
Texas and Gulf Coast contractors, fabricators and service companies may see new bidding opportunities once construction starts, which DOT expects in 2027. Gas producers and pipeline operators connected to the Tres Palacios storage hub and Williams Markham gas processing plant may find new demand. LNG buyers can negotiate offtake terms while the project is still assembling commitments. Lenders and investors should track DOE non-FTA approval and the license conditions as key conditions precedent.
Related reading
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Sources: gCaptain ↗ · OE Digital (Offshore Engineer) ↗
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The Oil & Gas Intelligence Brief summarizes publicly available information and links to its sources. It is general information, not legal advice, and reading it does not create an attorney-client relationship. Facts can change after publication; always check the official source.
