French Government Blocks Deal With Rio Grande LNG

The French government has reportedly stepped in to delay or cancel a $7 billion deal set to be signed by French trading firm Engie to buy fracked gas from NextDecade’s planned Rio Grande LNG export facility in Brownsville, Texas. The government cited concerns about the climate impact of methane emissions from the oil and gas fields in Texas that would supply the facility.

NextDecade has not yet announced a final investment decision on the project and is still struggling to line up customers. Rio Grande LNG also faces numerous legal challenges over its threat to the health and safety of local communities and the environment. 

In response, Sierra Club campaign representative Rebekah Hinojosa released the following statement: 

“The French government has banned fracking in their own country, so it should come as no surprise that they wouldn’t want to lock in decades of fracked gas imports from here in Texas, where fracking pollution is left unchecked. The Trump administration and Texas regulators may be unwilling to recognize the climate crisis or the need to transition to a clean energy future, but that isn’t stopping the rest of the world from rejecting the dirty fuels of the past. Local residents have known for years that Rio Grande LNG would be a disaster for our communities and the climate, and this latest setback should make it more obvious than ever that this dirty facility should never be built.”