US energy regulators have approved the Saguaro Connector Pipeline, which would export 2.8 billion cubic feet per day (bcf/d) of natural gas from Texas to Mexico Pacific’s Saguaro LNG export plant on Mexico’s west coast.
This approval is part of Mexico Pacific LNG’s $15 billion plan to construct a liquefied natural gas (LNG) plant in Mexico, aimed at exporting superchilled fuel processed from US natural gas.
Mexico Pacific LNG has yet to give the financial greenlight for the construction of the 15 million metric ton per year plant.
The Federal Energy Regulatory Commission’s (FERC) decision on the pipeline construction comes weeks after the Biden administration has paused export permit reviews by the Department of Energy to consider plant’s climate, consumer, and community impacts in its deliberations.
According to Reuters, the cross-border pipeline has been opposed by Texas groups, including environmental campaigners like the Sierra Club, who have argued FERC should consider greenhouse gas emissions, including possible methane leaks.