A U.S. federal appeals court has dismissed a legal challenge against the deepwater port license issued to Delfin LNG, allowing the offshore liquefied natural gas (LNG) export project to continue. The court ruled that the environmental organizations that filed the petition did not have the legal standing required to challenge the license.

The lawsuit was filed by three environmental groups, which argued that the U.S. Maritime Administration (MARAD) should have required additional environmental review and public consultation before issuing the license. The groups also claimed that changes made to the project since its original approval warranted a new review under federal environmental laws.

In its decision, the Fifth U.S. Circuit Court of Appeals found that the petitioners failed to demonstrate that any of their members had suffered a direct and specific injury connected to the project. Without establishing legal standing, the court said it could not consider the environmental claims raised in the case.

The Delfin LNG project, located approximately 40 miles offshore Louisiana, is designed to export liquefied natural gas using floating liquefaction vessels connected to existing offshore pipeline infrastructure. MARAD issued the deepwater port license in March 2025 following a renewed federal review of the project.

The court\'s ruling allows the licensing decision to remain in effect, enabling the project to proceed under its existing federal approvals. The decision addressed only the issue of legal standing and did not rule on the merits of the environmental arguments presented by the petitioners.