Commonwealth LNG’s Gas Export Facility Faces State Court Setback

Oct. 14, 2025, 6:51 PM UTC

A Louisiana state court vacated the coastal-use permit for Commonwealth LNG’s proposed export facility, saying the state agency violated Louisiana law.

The Office of Coastal Management under the Louisiana Department of Energy and Natural Resources failed to consider several factors when issuing the permit, including cumulative impacts, climate change, and environmental justice issues. That violated the state’s constitution and coastal use guidelines, Judge Penelope Q. Richard of the 38th Judicial District Court for Cameron Parish said Oct. 10.

The court remanded the permit to the state agency to re-do its review of the project—with the permit terminated in the meantime. The decision was a win for conservation groups challenging the project and a loss for a company already facing several setbacks in its attempt to complete construction.

“We are heartened by the court’s ruling that LDENR’s refusal to consider the environmental justice impacts of the project violated the Louisiana Constitution,” Eric Huber, managing attorney at the Sierra Club, said in a statement.

Commonwealth’s export facility—one of several planned for the area—previously faced a different lawsuit on the federal level. The US Court of Appeals for the DC Circuit in July 2024 found the Federal Energy Regulatory Commission in its approval didn’t properly assess the cumulative effects of the project’s nitrogen dioxide emissions.

The company has a pending request filed Oct. 2 with FERC for an extension to complete construction and place the project into service by Dec. 31, 2031. The original deadline was Nov. 17, 2027, but Commonwealth claimed lawsuits and executive actions delayed progress. That included the Biden-era moratorium on new US licenses to export liquefied natural gas, which was lifted during President Donald Trump’s second term. Trump has consistently pushed for fossil fuel development since taking office in January.

Commonwealth didn’t immediately respond to a request for comment on the Louisiana state court decision.

The Sierra Club has received funding from Bloomberg Philanthropies, the charitable organization founded by Michael Bloomberg. Bloomberg Law is operated by entities controlled by Michael Bloomberg.

The case is Sierra Club v. La. Dept. of Energy and Natural Resources, 38th Jud. Dist. Ct., Cameron, No. 10-21127, 10/10/25.


To contact the reporter on this story: Shayna Greene at sgreene@bloombergindustry.com

To contact the editors responsible for this story: Maya Earls at mearls@bloomberglaw.com; Zachary Sherwood at zsherwood@bloombergindustry.com

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