The US Court of Appeals for the Fifth Circuit on July 7 dismissed a legal challenge against a deepwater port licence issued to Delfin. In denying the petition for review, the court ruled that three environmental activist groups failed to establish standing because they could not show any project-related injury.
The US Maritime Administration (MARAD) first authorised the export facility, which is designed to ship liquefied natural gas, in 2017.
Although the Biden administration demanded further environmental assessments and withheld the licence in 2024, the project was subsequently revived.
Under a January 2025 executive order, President Donald Trump directed the agency to reconsider the environmental reviews and issue the permit. Following this executive directive, MARAD formally licensed the Delfin deepwater port in March 2025.
Energy and Natural Resources Division Principal Deputy Assistant Attorney General Adam Gustafson expressed support for the decision, noting its implications for future litigation.
He stated, “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.”
