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The project jeopardizes the health and environment of frontline communities, threatens local economies and endangered wildlife, and exposes investors to financial and reputational risks.
In its 2024 fourth quarter update, NextDecade, a Houston-based liquefied natural gas company, announced its intention to more than double its export capacity at the Rio Grande LNG facility near Brownsville, Texas. Despite NextDecade’s sunny projections, community members and investors in the project’s owner, Global Infrastructure Partners, and its parent company, BlackRock, should be wary of risks associated with the LNG facility. The proposed expansion could further harm local communities, the region, and pose significant risks to investors.
LNG is primarily composed of methane, a potent greenhouse gas with 80 times the atmospheric warming potential of carbon dioxide over a 20-year period. As originally proposed, this project was estimated to emit the equivalent emissions of 44 coal power plants every year, about 163 million tons of carbon dioxide annually. The newly announced expansion would be projected to emit over 300 million tons of carbon dioxide equivalent every year, or the equivalent of the emissions from 83 coal plants annually.
Perhaps in an effort to address criticism about emissions, NextDecade’s original proposal included carbon capture and storage (CCS), though some opponents described this as greenwashing from the beginning. The company withdrew its CCS application with the Federal Energy Regulatory Commission (FERC) in August 2024, yet continues to tout sustainability on its website.
The path forward demands a just transition to clean energy that respects both people and the planet.
The Rio Grande LNG facility sits in a region already burdened by economic hardship and environmental injustice. Its expansion will amplify air pollution, exposing local residents—many of whom are Latino and low-income—to increased risks of respiratory illnesses, cancer, and other serious health conditions.
Several nearby towns and entities formally oppose the project, including Laguna Vista, South Padre Island, Port Isabel, and the Laguna Madre Water District. The Rio Grande LNG terminal is being built on the sacred land of the Carrizo/Comecrudo Tribe of Texas, yet Rio Grande LNG, regulatory agencies, and banks have failed to consult with that Tribe on its impacts.
Additionally, according to an environmental report,, the facilities will likely significantly degrade local fishing, shrimping, and natural tourism industries, putting communities’ livelihoods at risk. The project also threatens critical wetlands adjacent to the Laguna Atascosa National Wildlife Refuge, which protects endangered species such as the ocelot and Kemp’s Ridley sea turtle. The noise, light, and industrial activity will disrupt fragile ecosystems and threaten biodiversity. The opposition shines a light on the environmental risks inherent in this project.
Rio Grande LNG has faced significant challenges, including pending approval and permitting of the project from the Federal Energy Regulatory Commission. Some banks and insurance companies have wavered in their support. Long before the expansion announcement, insurance company CHUBB backed out of the project. Societe Generale, BNP Paribas, and La Banque Postale have also pulled financial support from the project in the last several years.
For investors, this means escalating risks: construction delays, legal battles, potentially stranded assets, and the threat of diminished returns. Continuing to pour capital into this project is not just environmentally irresponsible—it is financially imprudent.
The global energy market is also shifting rapidly. Ongoing trade wars and on-and-off-again tariffs could make it difficult for Rio Grande LNG to meet its Final Investment Decision, the last fundraising hurdle a project like this must clear before beginning a new stage of construction. At the same time, LNG demand is projected to peak before 2030, and an oversupply threatens to depress prices. And the methane emissions from LNG production undermine the climate benefits often touted by proponents.
The Rio Grande LNG expansion is a lose-lose proposition. It jeopardizes the health and environment of frontline communities, threatens local economies and endangered wildlife, and exposes investors to financial and reputational risks. The path forward demands a just transition to clean energy that respects both people and the planet.
Investors in Global Infrastructure Partners and its parent company BlackRock can limit the harms associated with this project. Potential investors with each company should decline to invest in the expansion of the Rio Grande LNG terminal for the sake of local residents, the region’s economy, and returns on investments.
"We are hoping Maritime Executive's readership are reminded that investing in a fuel that will expedite the rapid decline of life on the planet is not a good look (or a good investment)," one spokesperson said.
When readers of The Maritime Executive peruse the magazine's latest issue on Friday, they will be in for a surprise.
Page 15 of the magazine displays an ad for GreenCurrent Group, which bills itself as a "full service communications and marketing agency specializing in supporting commercial maritime operators and energy providers investing in LNG [liquefied natural gas]—the most exciting and misunderstood marine fuel."
But when curious maritime or energy executives follow the QR code at the bottom-right corner of the ad, they will discover that no such company exists. Instead, they will be directed to a satirical video commercial for "Scrubby Greenwash," a giant anthropomorphic green sponge that promises to "scrub, scrub, scrub sad facts away."
The false ad and video are the latest hijinks from underground activist collective The Yes Men, who have used humor and pranks to target corporate wrong-doing since 1996.
"We are hoping Maritime Executive's readership are reminded that investing in a fuel that will expedite the rapid decline of life on the planet is not a good look (or a good investment)," The Yes Men's Natalie Whiteman told Common Dreams.
The Yes Men first made waves more than three decades ago with a mock World Trade Organization website that got taken seriously enough to win them an invitation to a real-world conference. Since then, they have used creative deceptions to call attention to various social, economic, and political issues from high drug prices to lack of accountability for the Bhopal disaster.
"We need industry leaders, energy producers, and all players across the supply chain to reject LNG as a climate solution."
Many of their past actions have targeted fossil fuel companies and raised awareness about environmental issues such as the climate emergency and corporate greenwashing. Over the past year, they have begun campaigning around LNG specifically.
"We've always been in favor of generally keeping living things still alive, and methane is going to make all of that not happen much faster," Whiteman said. "We thought hey, that's not cool at all."
"LNG is a massive issue," Whiteman continued. "and the industry is pouring enormous resources into convincing the public that LNG is a green fuel when in fact LNG is methane, with a warming capacity 80 times more powerful than CO2, that leaks across practically every step of the supply chain."
To tackle this issue, the group has taken Scrubby Greenwash on tour to major cities around the world.
How did they come up with the character?
"Greenwashing is the process of scrubbing inconvenient facts and science away to protect the reputation of a company," Whiteman explained. "It's a process of sanitizing their image with marketing, and so a delirious looking slimy sponge seems like the sensible choice."
Whiteman said that Scrubby was "building up a rabid fanbase all over the world" while "targeted companies don't seem nearly grateful enough for the services he provides in protecting their image."
The group also crashed the World LNG Summit in Berlin in December under the guise of a Royal Caribbean executive. They managed to hold a few one-on-one meetings and earn a panel invitation before being found out, in an adventure that will be fully shared in a documentary to be released next year.
Their focus on LNG parallels the work of more traditional climate activists, who have been sounding the alarm about its planet-warming potential and urging governments to curb the buildout of new LNG infrastructure.
However, following the election of U.S. President Donald Trump, there has been backsliding on the regulatory end, with Trump declaring an energy emergency to stimulate more fossil fuel extraction and lifting a Biden-era pause on new LNG export approvals. On Wednesday, the European Union also announced a plan to fund new LNG exports, which was interpreted by some as a concession to Trump's pro-fossil fuel agenda.
The Yes Men's latest fake ad targets not governments, but shipping and LNG companies directly.
The false ad placed by The Yes Men in The Maritime Executive.
In the video ad, a table of men in suits sit around a table in "liquefied natural gas headquarters" as a news item announces, "A new investigation has revealed that cruise liners powered by liquefied natural gas produce more global warming than those powered by regular marine fuel. That's because methane leaks at every point in the supply chain, and gas traps 80 times more heat in the atmosphere than carbon dioxide."
The newscaster continues, "That's bad news for everyone, but especially for the luxury cruise lines, like Royal Caribbean, which have been marketing themselves as green," at which point the camera pans over to a Royal Caribbean representative in a captain's uniform. "If the industry doesn't act fast, this information could hurt their bottom line."
It's at this point that the executives pick up the phone to call in the assistance of Scrubby, who comes bursting through a brick wall Kool-Aid style.
Whiteman said The Yes Men chose to target Maritime Executive and Royal Caribbean in particular because "the trade media is complicit in propagating the greenwashing that protects LNG's false reputation as a clean fuel. And the fact that Royal Caribbean is marketing their LNG-powered mega ships as sustainable is a criminal untruth, when they could be investing in zero-emissions alternatives or other efficiency measures.'
Ultimately, Whiteman told Common Dreams, "We need industry leaders, energy producers, and all players across the supply chain to reject LNG as a climate solution. It has proven to be anything but."
"It's a sorry testament to the influence of Big Oil on Capitol Hill that one of the top priorities of Congress is a blatant handout to the worst actors in the fossil fuel industry," said one critic.
Climate advocates are blasting congressional Republicans this week for their latest gift to the fossil fuel industry: sending a resolution to kill the federal Methane Emissions Reduction Program to the desk of U.S. President Donald Trump.
Big Oil-backed Trump is expected to sign the Congressional Review Act resolution, which senators passed along party lines on Thursday. That followed a Wednesday vote in the House of Representatives, where Democratic Reps. Henry Cuellar (Texas), Jared Golden (Maine), Vincente Gonzalez (Texas), Adam Gray (Calif.), Kristen Donald Rivet (Mich.), and Marie Gluesenkamp Perez (Wash.) supported the measure alongside all Republicans present except Rep. Brian Fitzpatrick of Pennsylvania.
Methane has more than 80 times as much warming power as carbon dioxide during its first two decades in the atmosphere. The pollution program was established by the 2022 Inflation Reduction Act and finalized by the Environmental Protection Agency (EPA) last November. The Associated Press reported Thursday that "most major oil and gas companies do not release enough methane to trigger the fee, which is $900 per ton, an amount that would increase to $1,500 by 2026."
The GOP resolution will end the program, but not the mandate from the 2022 law. Mahyar Sorour, Sierra Club's director of beyond fossil fuels policy, declared that "this attack on EPA's implementation of the methane waste emissions charge is short-sighted and harmful. It remains a legal requirement for EPA to hold the biggest methane polluters accountable for their negligence."
"Forcing the agency to implement the charge some other way after conducting a thorough, well-researched process is as wasteful of taxpayer resources as these oil and gas operators are wasteful of harmful methane," Sorour argued. "Technology to monitor and stop leaks is readily available and easy to implement, so only wasteful, careless corporations will face a fee for excessive methane pollution. Despite this setback, Sierra Club will not stop fighting to make polluters pay for their egregious actions."
The resolution hit Trump's desk just over a month after his return to office. Tyson Slocum, director of Public Citizen's Energy Program, said that "it's a sorry testament to the influence of Big Oil on Capitol Hill that one of the top priorities of Congress is a blatant handout to the worst actors in the fossil fuel industry. Congress is showing its hypocrisy by claiming to seek to rein in government spending, while voting to repeal a revenue-raising fee that only applies to wasteful oil and gas companies."
"The methane fee was paired with a $1.5 billion government spending program to help oil and gas companies reduce harmful emissions," noted Slocum, who then took aim at Trump and billionaire Elon Musk's so-called Department of Government Efficiency. "Voting to repeal the fee while allowing profitable corporations to pocket hundreds of millions of taxpayer dollars is an affront to the millions of working Americans disrupted by indiscriminate DOGE cost-cutting."
"It should not be too much to ask fossil fuel producers to do the bare minimum to capture leaking methane," he added. "Any child knows that when you make a mess, you should clean it up. The fee was intended to be a key part of enforcing standards on an industry that has repeatedly cut corners in its endless drive to extract more fossil fuels."
Critics highlighted how the rollback is expected to affect not only the warming planet but also public health. Moms Clean Air Force national field director Patrice Tomcik said that "as a mother living with oil and gas operations in my neighborhood, I have concerns about the impact of oil and gas pollution on the health of my children and neighbors."
"Polling shows that support for stronger standards on oil and gas operations is widespread across the country, including in oil and gas states, such as Pennsylvania, where my family lives," Tomcik pointed out. "Protecting the air our children breathe and combating the global heating fueling extreme weather should be nonnegotiable."