Delfin LNG Clears Legal Hurdle as Court Dismisses Environmental Claims
The U.S. Court of Appeals for the Fifth Circuit yesterday denied a petition for review in a legal challenge to the Maritime Administration’s issuance of a deepwater port license to Delfin LNG. The environmental groups had challenged the approval, which was granted in March 2025 for the deepwater port facility to be located approximately 40 miles off the Louisiana coast for the export of LNG to the global market.
In denying the petition, the court held that three environmental groups failed to establish standing. The court did not rule on the merits of the case because the petitioners did not show any injury that might be traced to the challenged project.
“The Fifth Circuit’s ruling will make it harder for environmental groups — who have no stake in important energy projects — to challenge projects that will bring jobs and prosperity to Americans,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD).
The Maritime Administration first authorized the port in 2017 and issued the final licenses for the project in March 2025. Delfin Midstream and its investor group last month announced they had reached a financial investment decision to proceed with Delfin FLNG 1, which will become the first floating LNG project in the United States and the largest FLNG project globally.
To be positioned off the coast of Louisiana, the project is expected to have an initial export capacity of 4.4 million tonnes of LNG per year. It is the first stage of a proposed project that would have a total capacity of 13.2 MTPA based entirely on FLNGs. The investors for the project are being led by Global Infrastructure Partners, part of BlackRock. Mitsui O.S.K. has been an investor since 2023 and looks to contribute its expertise in LNG transport. Vitol, an energy and commodities trader, and Diameter Capital Partners have also agreed to invest in the first phase of the project.
that matters most
Get the latest maritime news delivered to your inbox daily.
“This commonsense ruling ensures that this vital energy infrastructure project won't be derailed,” said Maritime Administrator Stephen Carmel. The U.S. Department of Transportation’s Maritime Administration (MARAD) reports it will move forward with issuing a Deepwater port license to Delfin LNG following a decision by the U.S. Court of Appeals for the Fifth Circuit
Delfin FLNG 1 has already secured commitments for long-term LNG sales agreements with leading global energy companies, including Vitol, Expand Energy, Centrica, and Gunvor. They expect the first vessel to be operational by 2030.
