U.S. Court Cancels Permit for Oil Port Project with Japan

Washington, Aug. 18 (Jiji Press)–A U.S. appeals court has canceled a permit for a project to build a deepwater port, part of a 550-billion-dollar investment agreement between Japan and the United States, it was learned Tuesday. In February 2025, the U.S. Department of Transportation’s Maritime Administration issued a permit for Texas Gulflink LLC’s project to build a deepwater crude oil export terminal off the Texas Gulf Coast area, excluding the associated pipeline infrastructure. However, a civic group filed a lawsuit, arguing that the approval would allow the construction of a port overlapping with another port in an area where such a facility cannot be built. In its decision dated Wednesday, the appeals court upheld the group’s argument, finding a serious procedural flaw in the approval process. The court ordered the permit to be revoked, saying that the project area was improperly designated. The ruling highlighted risks associated with large-scale investments in the United States. The Texas Gulflink project is one of the first three projects under the Japan-U.S. investment pact that the Japan Bank for International Cooperation in May said would co-finance with commercial banks. The portion of loans to be extended by the private sector is set to be insured by Nippon Export and Investment Insurance. Companies including Japan’s Mitsui O.S.K. Lines Ltd. and Nippon Steel Corp. expressed interest in the project, valued at 2.1 billion dollars. END [Copyright The Jiji Press, Ltd.]