Ruling a relief for LNG industry

WASHINGTON — Two Houston exporters of liquefied natural gas won an important legal victory last week when a federal appeals court cleared the way for the expansion and construction of their LNG terminals on the Gulf Coast.

The D.C. Circuit Court of Appeals ruled against environmentalists’ efforts to block the expansion of Cheniere Energy’s Sabine Pass terminal in Louisiana, near the Texas border, and the construction of Freeport LNG’s terminal south of Houston. The Sierra Club sued to stop the projects, arguing they would accelerate climate change by increasing natural gas production.

Natural gas adds to greenhouse gases in two ways. When burned, it emits carbon dioxide. In addition, some natural gas — which is largely the potent greenhouse gas methane — escapes into the atmosphere during production.

The appeals court ruled that the environmental analysis by the federal government was limited to the local impact of a facility. It also found no evidence the new facilities would lead to expanded drilling; instead they would draw from the large quantities of gas already flowing from shale fields in Texas.

But the fight does not appear over. Lena Moffitt, director of the Sierra Club’s Beyond Dirty Fuels campaign, said the conservation group plans to sue the Department of Energy, which also regulates LNG export terminals.

The ruling came as a relief to the oil and gas industry, which is facing more legal challenges from environmental groups. “The consequence of these rulings is that the U.S. LNG industry will continue to grow,” said Charlie Riedl, executive director of the Center for Liquefied Natural Gas.

Freeport LNG Development declined comment. Cheniere Energy did not respond to requests for comment.