Fifth Circuit Clears Path for Texas LNG Brownsville Terminal Construction
The Fifth Circuit Court of Appeals on January 14, 2026 overruled the petition of the South Texas Environmental Justice Network (STEJN) seeking to block final approval and construction of the LNG terminal proposed for the Brownsville, Texas port by Texas LNG Brownsville, LLC (“Texas LNG).
Texas LNG applied for FERC and the Texas Environmental Quality Board (“TCEQ”) permits to build an LNG terminal adjacent to the Brownsville Ship Channel prior to the pandemic. Both FERC and TCEQ granted the requested permits and several challenges were raised against both agencies’ decisions. Ultimately, the D.C. Circuit court sent the federal FERC case back to FERC, which confirmed its order, and the Texas Third Court of Appeals sitting in Austin dismissed the challenge to TCEQ for lack of jurisdiction.
Predictably, construction was delayed. Because the permits were time limited, Texas LNG applied to TCEQ (which was charged with enforcement of its own as well as FERC’s order) for extensions. TCEQ, starting in 2021, granted three (3) extensions.
STEJN challenged the third extension by way of a motion to overturn it. That required TCEQ to re-view the permit. The TCEQ Executive Director and Texas LNG sought denial of STEJN’s motion. TCEQ’s Office of Public Interest supported granting the motion due to intervening additional regulations. Because TCEQ failed to reach a final decision, the motion was denied by operation of law.
STEJN then filed a petition for review of all three extensions in the Fifth Circuit Court of Appeals. On review, a Fifth Circuit 3 judge panel upheld the TCEQ’s decision making, clearing the way for full construction to begin. There may be some possibility that STEJN will seek a second review by the Fifth Circuit sitting “en banc” (i.e., a hearing before all the appellate judges in the 5th Circuit), or a petition to the US Supreme Court, but such relief seems unlikely.
