Gabby Brown, gabby.brown@sierraclub.org
French trading firm Engie has reportedly dropped negotiations on a $7 billion, 20-year contract to import fracked gas from NextDecade’s planned Rio Grande LNG export facility near Brownsville, Texas. The decision from Engie follows a push from the French government to delay or block the deal, citing concerns about the environmental impact of fracked gas from Texas. Fracking has been banned in France since 2011.
NextDecade has not yet announced a final investment decision on the project and is still struggling to line up customers. Rio Grande LNG also faces numerous legal challenges over its threat to the health and safety of local communities and the environment. French bank Société Générale has also faced public pressure to drop its support for the project.
“No matter how hard the fossil fuel industry and their Republican allies in Congress push to get this dirty fracked gas export facility built, the fact is that no one wants to buy what they’re selling,” said Sierra Club campaign representative Rebekah Hinojosa. “Local residents have known for years that Rio Grande LNG would be a disaster for our communities and the climate, and this latest setback should make it more obvious than ever that this dirty facility should never be built.”
“The rejection by the French government and Engie of this contract is an explicit acknowledgement of the climate, environmental, and social costs of fracked gas. At the same time, Société Générale continues to defend its association with this dirty industry at all costs. It is time for the bank to stop denying the facts and put an end to its support to Rio Grande LNG, as well as any new investment in the sector,” said Lorette Philippot, Private Finance Campaigner with Friends of the Earth France.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3.5 million members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.