MARAD Approves $8.2 Billion Texas LNG Export Port in Record-Time Review

The Trump administration has approved an $8.2 billion offshore liquefied natural gas export project off the Texas coast, marking a major milestone for its effort to speed up deepwater port licensing by shifting oversight from the U.S. Coast Guard to the Maritime Administration.

Transportation Secretary Sean Duffy announced Wednesday that the Maritime Administration (MARAD) has approved the deepwater port license application for ST LNG, LLC, a proposed LNG export facility approximately 10.4 miles offshore Matagorda, Texas.

The project is expected to begin construction in 2027 and enter service in 2029, adding up to 8.4 million metric tons of annual LNG export capacity. According to the Department of Transportation, the $8.2 billion development could support 2,000 construction jobs and as many as 855 permanent positions.

But the approval is also significant for how quickly it was completed.

MARAD finalized the project’s Final Environmental Impact Statement (FEIS) in just 410 days, roughly 3.7 years faster than the historical average and a 70% reduction in review time, according to DOT. The administration described it as the fastest deepwater port license review in more than two decades.

The decision provides an early test of a regulatory overhaul that gCaptain reported on earlier this year, when the Trump administration announced that MARAD would assume the lead role in reviewing deepwater port applications from the Coast Guard.

Under the new arrangement, MARAD leads the environmental review and licensing process, while the Coast Guard retains responsibility for maritime safety, security, vessel traffic, facility design and operational oversight.

The change was intended to address longstanding delays in approving offshore energy infrastructure. As gCaptain previously reported, only 11 deepwater port applications had been approved since the federal licensing system was established in the 1970s, with just eight licenses issued.

The administration has argued that lengthy reviews have become an obstacle to expanding U.S. energy exports.

“By slashing red tape and modernizing our licensing processes, the Trump Administration is delivering a massive economic boom for the people of Texas,” Duffy said Wednesday.

MARAD Administrator Stephen Carmel called the ST LNG decision the agency’s third deepwater port approval under the Trump administration.

“Approving the ST LNG deepwater port license—our third approval under the Trump Administration—proves we can accelerate the safe development of crucial energy infrastructure that will strengthen our supply chains and drive down energy prices,” Carmel said.

Offshore LNG Production

Unlike conventional onshore LNG export terminals, ST LNG would process and load natural gas offshore, allowing LNG carriers to operate away from congested coastal port facilities.

The project calls for four liquefaction systems, each capable of producing 2.1 million metric tons of LNG annually. At full buildout, the facility would include 20 offshore platforms, four floating LNG storage units, four vessel mooring systems and approximately 7.7 miles of pipeline.

Natural gas would be supplied from the Tres Palacios Natural Gas Storage and Trading Hub and the Williams Markham Gas Processing Plant through existing pipeline infrastructure.

The offshore location is intended to reduce vessel traffic in congested coastal waterways and limit potential collision risks associated with LNG shipping.

According to DOT, the facility could expand U.S. LNG export capacity by 7% to 9%.

A Faster Approval Process

The licensing decision follows a series of regulatory milestones over the past year.

MARAD formally began processing the ST LNG application in 2025, published the draft environmental impact statement in April 2026 and issued the final environmental impact statement in July. A final public hearing was held in August before the agency reached its licensing decision.

The review involved the Coast Guard, other federal agencies and the State of Texas.

DOT credited the shortened timeline to eliminating duplicative administrative procedures, streamlining decision-making and improving coordination among agencies.

The approval also advances the administration’s broader maritime and energy policies, including its executive orders on American energy production and restoring U.S. maritime dominance.

While the administration is presenting the ST LNG decision as evidence that the new system can move projects through federal review more quickly, the larger test will be whether the changes translate into more offshore terminals reaching construction and commercial operations.

The full Record of Decision and supporting documents are available through Regulations.gov under docket MARAD-2025-0096.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 106,336 members