Court ruling may derail Brownsville ship channel project

The Facts -

  • Court ruling may impact Brownsville's ship channel deepening plans.
  • BND claims LNG projects will create jobs and boost local economy.
  • Vacating FERC authorizations threatens major investments and projects.


Impact of D.C. Court Decision on Brownsville Ship Channel Deepening

The Brownsville Navigation District warns a decision by the D.C. Circuit Court may severely affect plans to deepen the Brownsville Ship Channel from 42 to 52 feet. The ruling impacts permits for the Rio Grande and Texas LNG projects at the port.

BND has filed an amicus curiae in the FERC lawsuit, supporting a rehearing request by companies involved. The case concerns authorizations for LNG terminals and the Rio Bravo Pipeline. The court's decision to vacate FERC's authorizations rather than remanding could delay two projects that promise billions in investment and create thousands of jobs in Cameron County.

The amicus curiae argues that vacating permits could impair the port's separate deepening project, approved by Congress and partially funded by the LNG companies. The U.S. Army Corps of Engineers has highlighted the economic benefits such as enhanced trade and shipping efficiency.

According to BND, the LNG projects bring job opportunities from skilled engineering to construction roles. They include commitments to workforce development for local residents. The projects are expected to spur infrastructure improvements in utilities and critical services, benefiting both the port's tenants and the community.

Key stakeholders, including mayors from major South Texas cities, support the Rio Grande LNG project for its potential to reverse poverty trends. They note the recent court decision poses a threat to regional economic vitality.

Without the LNG projects, the region could face economic stagnation, higher unemployment, and reduced public services. The amicus curiae emphasizes the necessity of these projects for sustainable economic growth and development in Brownsville and surrounding areas.

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