Contract to deepen Brownsville port issued as LNG terminal and pipeline permits revoked

Updated: Aug 15, 2024 / 08:16 AM CDT

The Port of Brownsville in South Texas on the border with Mexico will be deepened in preparation for an LNG terminal, however the terminal does not have a permit to operate. (Photo Courtesy Port of Brownsville)

McALLEN, Texas (Border Report) — The U.S. Army Corps of Engineers has awarded a $104 million contract for the deepening of a ship channel at the Port of Brownsville after a court recently revoked permits for the building of a liquified natural gas (LNG) export terminal and pipeline there.

A court in Washington, D.C., last week struck down the permits issued by the Federal Energy Regulatory Commission for two LNG export terminals and or the construction of a pipeline to carry the natural gas at the Port of Brownsville.

The deepening of the Brazos Island Harbor Ship Channel by 10 feet will take the channel to a depth of 52 feet for a 13-mile stretch. The ship channel is 17 miles long and connects to the Gulf of Mexico and is located near the border with Mexico.

The Army Corps issued the contract to Callan Marine Ltd., the agency said Tuesday.

Over 7 million cubic yards of material will be removed using a pipeline dredge to deepen the navigation channel, the agency said.

NextDecade LNG, working in conjunction with the Port of Brownsville, is involved in another construction effort to deepen the ship channel to 54 feet for a 4.5-mile stretch.

“The port’s critical cost-sharing participation has allowed the Corps to undertake this transformative infrastructure improvement, which will have lasting positive impacts on the south Texas economy. By deepening the ship channel, we are not only fulfilling our mission to maintain America’s vital waterways, but also generating immense economic benefits through increased trade, shipping efficiencies, and supporting the region’s industries,” said Col. Rhett Blackmon, district commander of the Army Corps of Engineers Galveston District.

A D.C. court ruled against a federal agency that had approved the building of an LNG terminal and LNG pipeline on the South Texas border with Mexico. (AP File Photo/Cliff Owen)

“The deepening of the Brownsville Ship Channel is a monumental project that will set the Port of Brownsville on a strong path for the future,” said Port of Brownsville Director and CEO William Dietrich. “This investment ensures that the port remains a critical player in the global supply chain, supporting sustainable growth for diverse industries.”

Several environmental groups oppose the LNG terminal and praised last week’s court ruling.

They don’t want LNG transported through the ship channel, which is located near a sensitive ecosystem and wetlands.

“Environmental justice matters and FERC absolutely must consider these issues when deciding on such massively harmful projects,” Sierra Club senior lawyer Nathan Matthews said in a statement.

NextDecade Corp., which owns Rio Grande LNG, issued a statement after last week’s court ruling: “The company is reviewing the court’s decision and assessing all of its options. At this time, construction continues on the first three liquefaction trains and related infrastructure (Phase 1) at the Rio Grande LNG Facility, and the company is evaluating the impact of the court’s decision on the timing of a positive final investment decision.”

Sandra Sanchez can be reached at SSanchez@BorderReport.com.