SUBSCRIBE
PROFILE

United States clears Rio Grande and Commonwealth LNG toward final decisions

U.S. regulators have approved two major milestones for Rio Grande LNG and Commonwealth LNG, clarifying their investment decision timelines and reinforcing the country’s role in expanding global liquefaction capacity.

Share:

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

SUBSCRIBE — 99 $ for the 1st year

Create a free account to read this article

*renews at 199$/year, cancel anytime before renewal.

U.S. federal authorities have taken decisive steps for two strategic liquefied natural gas (LNG) projects on the Gulf Coast. The Federal Energy Regulatory Commission (FERC) confirmed authorization for the Rio Grande LNG project developed by NextDecade, while the Department of Energy (DOE) granted Commonwealth LNG a license to export to non-free trade agreement countries, valid through 2050. These approvals provide a full regulatory framework as the developers approach critical deadlines for their Final Investment Decisions (FIDs).

Rio Grande LNG: validated expansion and tight timeline

Rio Grande LNG, located in Brownsville, Texas, already has a first phase of 17.5 million tons per year under construction. The project aims for a total capacity of about 27 million tons per year with two additional trains. Bechtel, in charge of engineering and construction, has set a price validity deadline of September 15, 2025, placing NextDecade under time pressure for its FID. The project will be supplied by the Rio Bravo pipeline, operated by Enbridge, designed to transport up to 4.5 billion cubic feet per day from Agua Dulce.

On the commercial side, Train 4 is fully covered with 4.6 million tons per year of contracts split between Abu Dhabi National Oil Company (ADNOC), Saudi Aramco, and TotalEnergies. Train 5 has begun commercialization with a firm 2.0 million tons per year agreement signed with JERA Co., Inc. These long-term commitments, together with equity contributions, strengthen the bankability of the expansion.

Commonwealth LNG: DOE authorization and strategic contracts

Commonwealth LNG, based in Louisiana, has secured its final DOE export authorization to non-free trade agreement countries. The project targets 9.5 million tons per year of capacity with six modular SnapLNG trains designed by Technip Energies. First LNG delivery is expected in 2029, subject to an investment decision in 2025.

The company has secured about 4 million tons per year in long-term agreements: 1 million with JERA, 1 million with Petroliam Nasional Berhad (PETRONAS), and 2 million with Glencore International AG. Glencore has also entered into a gas supply agreement with Kimmeridge’s upstream unit based on international netback pricing, aligning feedstock costs with export sales. The developer has also requested approval for preliminary site work to accelerate execution after FID.

Market context and U.S. FID wave

These advances come as several U.S. projects have already reached final investment decisions this year, including Venture Global’s CP2 LNG Phase 1 (14.4 million tons per year), Cheniere’s Corpus Christi expansion (5 million tons per year), and Woodside’s Louisiana LNG project (16.5 million tons per year). These milestones highlight the trajectory of the United States toward a new large-scale liquefaction wave.

Spot reference prices remain favorable: around $10.7 per million British thermal units (MMBtu) at the Title Transfer Facility (TTF) in Europe and about $11.2/MMBtu for the Japan Korea Marker (JKM) in Asia at the end of August. These levels support the economics of U.S. LNG exports and create a favorable environment for commercial and financial closures of ongoing projects.

  • Popular on energynews.pro
India diversifies coking coal purchases, Australia retreats
Commonwealth Fusion Systems raises $863mn for its ARC fusion power plant
Guidehouse forecasts $8.1 billion revenues for modular reactors by 2034
Avangrid invests $122 million in Meyer substation to strengthen interconnection
Mondi invests €120mn in biomass power plant in Slovakia to cut energy reliance
KOGAS signs 3.3 mtpa of US LNG for ten years starting in 2028
Korea Gas Corporation commits to 3.3 mtpa of US LNG from 2028 for ten years, complementing new contracts to cover expired volumes and diversify supply sources and price indexation.
Bangladesh finalises memorandum with Aramco for LNG supply deals
Petrobangla plans to sign a memorandum with Saudi Aramco to secure liquefied natural gas deliveries under a formal agreement, following a similar deal recently concluded with the Sultanate of Oman.
CTCI wins TWD29.6bn contract for LNG regasification unit at Kaohsiung
CTCI strengthens its position in Taiwan with a new EPC contract for a regasification unit at the Kaohsiung LNG terminal, with a capacity of 1,600 tonnes per hour.
Exxon expects 20% increase in global natural gas demand by 2050
Exxon Mobil forecasts sustained growth in global natural gas demand by 2050, driven by industrial use and rising energy needs in developing economies.
Capstone secures 5.8 MW order in Mexico with major food manufacturer
Capstone Green Energy received a 5.8-megawatt order for its natural gas microturbines, to be deployed across multiple food production facilities in Mexico through regional distributor DTC Machinery.
Harvest Midstream acquires MPLX gas assets in western US for $1bn
Private firm Harvest Midstream has signed a $1 billion acquisition deal with MPLX for gas processing and transport infrastructure across three western US states.
Sempra Infrastructure and EQT sign 20-year deal for Texan LNG supply
Sempra Infrastructure and EQT Corporation have signed a 20-year liquefied natural gas purchase agreement, consolidating Phase 2 of the Port Arthur LNG project in Texas and strengthening the United States’ position in the global LNG market.
Subsea7 secures offshore contract up to $1.25bn with TP-OTC in the Black Sea
Subsea7 was selected to lead phase 3 of the Sakarya gas field, a strategic contract for Türkiye’s energy supply valued between $750mn and $1.25bn.
Japan challenges China’s installation of 21 gas platforms in the East China Sea
Tokyo protests against Chinese installations deemed unilateral in a disputed maritime zone, despite a bilateral agreement stalled since 2010.
Bp awards Baker Hughes a 90-month contract for Tangguh LNG in Indonesia
Bp has awarded Baker Hughes a long-term service agreement for the Tangguh liquefied natural gas plant, covering spare parts, maintenance and technical support for its turbomachinery equipment.
Sinopec deploys 65,000 Sercel sensors for 3D seismic survey in Mexico
Chinese group Sinopec has launched a large-scale seismic imaging campaign across 3,000 km² in Mexico using nodal technology from Sercel, owned by Viridien, delivered in August to map areas with complex terrain.
CNOOC signs two gas exploration contracts in Indonesia with EnQuest and Agra
CNOOC Limited has signed two production sharing contracts with SKK Migas to explore the Gaea and Gaea II blocks in West Papua, alongside EnQuest and Agra.
AMIGO LNG signs 15-year deal with Macquarie for 0.6 MTPA of LNG
Australian group Macquarie partners with AMIGO LNG for an annual supply of 0.6 million tonnes of liquefied natural gas over fifteen years, with operations expected to start in 2028 from the Guaymas terminal in Mexico.
ONEOK and partners launch Eiger Express project to link Permian to Gulf
A consortium led by ONEOK is developing a 450-mile pipeline to transport up to 2.5 billion cubic feet of gas per day from the Permian Basin to the Gulf Coast.
AMIGO LNG awards Drydocks World the construction of the world’s largest FLNG
AMIGO LNG has awarded Drydocks World a major EPC contract to build the world’s largest floating LNG liquefaction terminal, aimed at strengthening exports to Asia and Latin America.
Canadian Utilities secures AUC approval for Yellowhead gas pipeline project
The Alberta Utilities Commission approves the Need Assessment Application for the Yellowhead Pipeline, marking a key step for Canadian Utilities, a subsidiary of ATCO. The project foresees significant economic benefits for the province.
Nigeria LNG Signs 20-Year Deal to Secure 1.29 Billion Cubic Feet of Gas
Nigeria LNG signs major deals with oil groups to ensure gas supply to its liquefaction infrastructure over two decades.
The European Union seals a $750 billion deal on American energy
The European Union and Washington have finalized an agreement setting $750 billion in U.S. gas, oil and nuclear purchases, complemented by $600 billion in European investments in the United States by 2028.
Sempra and ConocoPhillips Strengthen Partnership on Port Arthur LNG Phase 2
Sempra Infrastructure and ConocoPhillips signed a 20-year LNG sales agreement for 4 Mtpa, confirming their joint commitment to expanding the Port Arthur LNG liquefaction terminal in Texas.
Russia increases gas deliveries to China despite oil decline
Russian pipeline gas exports to China rose by 21.3% over seven months, contrasting with a 7.6% drop in oil shipments during the same period.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: $99 for the 1styear year, then $ 199/year.

SUBSCRIBE - €99