Cross-border pipeline to Mexico LNG plant receives U.S. regulatory approval

(UI) — U.S. regulators have granted approval for a cross-border pipeline, facilitating the export of approximately 2.8 billion cubic feet per day of natural gas from Texas to the Mexico Pacific's Saguaro LNG export facility on Mexico's western coastline, Reuters reported.

The company plans to construct a liquefied natural gas (LNG) plant valued at approximately $15 billion in Mexico, aimed at exporting superchilled fuel derived from U.S. natural gas.

While the approval signifies progress in the project's advancement, Mexico Pacific LNG has yet to finalize the financial aspects for the construction of the proposed 15 million metric ton per annum LNG plant.

The decision by the Federal Energy Regulatory Commission (FERC) to approve the construction of the Saguaro Connector Pipeline comes amidst recent actions by the Biden administration, including a temporary halt on export permit reviews by the Department of Energy. The administration has emphasized the importance of considering the climate, consumer, and community impacts of such projects in its evaluation process.

Despite the approval, the cross-border pipeline has faced opposition from various Texas groups, including environmental advocates such as the Sierra Club. These groups argue that FERC should take into account potential greenhouse gas emissions, including the risk of methane leaks, when assessing such projects.

This story was originally published by Reuters.

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