Louisiana Court Voids Commonwealth LNG Permit Over Review Lapses

A Louisiana court has revoked Commonwealth LNG’s state coastal use permit, ruling that regulators failed to consider environmental impacts on nearby low-income and minority communities, in a case brought by the Sierra Club.

By Mary Holcomb, Digital Lead

(P&GJ) — A Louisiana state court has revoked the coastal use permit for the proposed Commonwealth LNG export terminal, ruling that state officials failed to adequately consider the project’s environmental impacts on surrounding communities.

The order, issued by the 19th Judicial District Court in Baton Rouge, found that the Louisiana Department of Natural Resources (LDNR) violated the state constitution by approving the permit without assessing how the project would affect nearby communities of color and low-income residents.

The lawsuit, filed by the Sierra Club and local residents, challenged LDNR’s 2023 decision to grant Commonwealth LNG a coastal use permit for construction of the export terminal and associated infrastructure in Cameron Parish.

Judge Trudy White ruled that LDNR’s approval process failed to meet constitutional standards requiring state agencies to protect the health and environment of Louisiana citizens. The court ordered LDNR to vacate the permit and conduct a new review that addresses the project’s social and environmental effects.

Sierra Club attorneys called the ruling a “major victory” for environmental justice and accountability in the permitting of large-scale industrial projects along Louisiana’s Gulf Coast. Commonwealth LNG has not yet commented on the decision.

The project, proposed to export up to 9.3 million tonnes per year of LNG, is one of several Gulf Coast terminals designed to expand U.S. natural gas exports. The ruling could delay or alter the project’s timeline pending further regulatory review.