Washington

The US has approved an application from an Indian-American-led firm, ST LNG, to build a deepwater liquefied natural gas (LNG) port off the coast of Texas at a cost of USD 8.2 billion.

US Transportation Secretary Sean Duffy announced earlier this week that the Maritime Administration (MARAD) fast-tracked the deepwater port licensing process by completing the Final Environmental Impact Statement within 410 days as against five years.

India-born Sharad Tak’s ST LNG deepwater port will be built approximately 10.4 miles offshore Matagorda, Texas.

Construction is expected to begin in 2027, with the port coming online in 2029, a Department of Transportation statement said.

At full capacity, the port will include 20 platforms, four LNG floating storage units, four mooring systems, and 7.7 miles of pipeline, it said, adding that the port location is expected to move vessel traffic away from more congested onshore areas, reducing vessel collisions and safety risks.

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

The feed gas for the port will come from the Tres Palacios Natural Gas Storage and Trading Hub and the Williams Markham Gas Processing Plant through an existing Transco pipeline approximately 5.6 miles northeast of the port.

“With approximately USD 8.2 billion in planned investment, 8.4 million tonnes of annual LNG export capacity, and thousands of American jobs supported during construction and operations, ST LNG will contribute to America's energy security,” Tak, founder and CEO of ST LNG, said in a statement.

US India Strategic Partnership Forum President Mukesh Aghi welcomed the approval of a license to build the deepwater port off the coast of Texas.

“As India seeks to diversify its energy supplies and strengthen energy security, projects such as this led by ST LNG can create new opportunities for long-term LNG trade between our two countries,” Aghi said in a statement.

Tak is a first-generation Indian-American entrepreneur and built and led businesses across technology, manufacturing, energy, broadcasting, and hospitality.

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The approval comes about 10 months after Duffy announced that the Maritime Administration (MARAD) would take on oversight of deepwater port licensing from the US Coast Guard and streamline environmental reviews and accelerate license approvals.

According to the U.S. Department of Transportation, the project could increase US LNG export capacity by 7–9 per cent and is expected to support approximately 2,000 construction jobs and up to 855 permanent jobs.