SUNNY ISLES BEACH, Florida: ST LNG, founded by Indian American entrepreneur Sharad Tak, has secured federal approval for a proposed liquefied natural gas (LNG) export facility off the Texas coast, marking a major milestone for the $8.2 billion project that could generate nearly $100 billion in exports over 20 years.
The facility, to be located off Matagorda, approximately 100 miles southwest of Houston, would have an annual production capacity of 8.4 million metric tons of LNG, Tak told The American Bazaar in an interview at his home in Sunny Isles Beach, Florida.
The project involves building a deepwater LNG port approximately 10.4 miles offshore. It would feature four LNG processing trains, each capable of producing about 2.1 million metric tons annually.
On October 28, U.S. Transportation Secretary Sean Duffy announced that the Maritime Administration (MARAD) had approved ST LNG’s deepwater port license application following an accelerated environmental review completed in 410 days.
The approval marks a significant regulatory milestone for the project, which is designed to export American natural gas to international markets, including Europe and Asia.
Tak explained that LNG is natural gas cooled to extremely low temperatures until it becomes liquid, substantially reducing its volume and allowing it to be transported aboard specialized tanker ships. Once it reaches its destination, the LNG is converted back into gas and distributed through pipelines for industrial and other uses.
The process makes it possible to export natural gas to overseas markets that cannot be reached through pipelines from the United States.
Tak estimated that the facility could generate nearly $100 billion in natural gas exports over two decades, underscoring the scale of the investment and its potential contribution to American energy trade.
“With approximately USD 8.2 billion in planned investment, 8.4 million tonnes of annual LNG export capacity, and thousands of American jobs supported during construction and operations, ST LNG will contribute to America’s energy security,” Tak said in an earlier statement.
A major addition to U.S. energy infrastructure
The proposed deepwater facility will include 20 platforms, four floating LNG storage units, four mooring systems and approximately 7.7 miles of pipeline.
Its offshore location is expected to move LNG vessel traffic away from congested onshore areas, potentially reducing the risk of collisions and improving maritime safety.
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The facility will receive natural gas from the Tres Palacios Natural Gas Storage and Trading Hub and the Williams Markham Gas Processing Plant. The gas will be delivered through an existing Transco pipeline located approximately 5.6 miles northeast of the proposed port.
According to the U.S. Department of Transportation, the project could increase the country’s LNG export capacity by 7% to 9%.
The department also estimates that the development could support approximately 2,000 construction jobs and up to 855 permanent jobs once operations begin.
The project is still in the development stage, with financing and long-term customer agreements among the remaining considerations before construction moves forward.
ST LNG is targeting a final investment decision by mid-to-late 2027, subject to securing sufficient customer commitments. The company has indicated that commercial operations could begin around 2030.
The project is expected to be developed in phases, with individual LNG processing units moving forward as additional long-term purchase agreements are secured.
A faster federal approval process
The regulatory milestone reflects changes introduced by the Trump administration to accelerate the licensing of deepwater energy infrastructure.
About 10 months earlier, Duffy announced that MARAD would assume greater responsibility for deepwater port licensing from the U.S. Coast Guard, with the aim of simplifying reviews, eliminating overlapping procedures and shortening approval timelines.
Under the revised process, MARAD completed the Final Environmental Impact Statement for ST LNG in 410 days, nearly 3.7 years faster than the historical average.
According to the Transportation Department, the review was approximately 70% faster than previous timelines, making it the quickest deepwater port license review in more than two decades.
MARAD worked with the U.S. Coast Guard, other federal agencies and the State of Texas during the environmental and safety review.
The approval is a major step toward construction, although the company must still meet applicable federal and state requirements and complete its commercial arrangements.
For Tak, the regulatory clearance brings the proposed project closer to becoming one of the major new LNG export facilities along the Texas coast.
Potential for greater India–U.S. energy trade
The project has also attracted attention because of its potential to strengthen energy trade between India and the United States.
India has been seeking to diversify its energy supplies, while the United States has expanded its LNG export infrastructure to serve growing international demand.
Tak has indicated that the company is pursuing long-term LNG sales agreements with buyers in Asia and Europe, including potential customers in India.
The company is also exploring financing options involving a combination of debt and equity to support the proposed development.
The project comes as energy security and the diversification of natural gas supplies have become increasingly important considerations for countries seeking reliable long-term sources of fuel.
For India, a growing economy with substantial energy requirements, additional LNG imports from the United States could offer another source of supply.
Who is Sharad Tak?
For Tak, the multibillion-dollar LNG development represents another chapter in an entrepreneurial career spanning more than five decades.
Born in Jodhpur, Rajasthan, in 1944, Tak is a first-generation Indian American entrepreneur who has built and led businesses across technology, government contracting, manufacturing, energy, broadcasting, real estate and hospitality.
He moved to the United States in 1966 to pursue a master’s degree in computer science at the State University of New York at Buffalo after completing his BTech in electrical engineering from the Indian Institute of Technology (IIT) Bombay.
Tak began his professional career as a senior computer engineer at Computer Sciences Corporation before venturing into entrepreneurship in the early 1970s.
He founded Systems and Applied Sciences Corporation, later renamed ST Systems Corporation (STX), which provided programming, systems integration and other technology services to U.S. government agencies, including NASA and the Federal Aviation Administration.
Tak is regarded as a pioneer in the government contracting industry and is believed to have been among the earliest Indian American entrepreneurs to establish a government contracting company in the United States.
By 1991, STX had reached approximately $70 million in annual sales before Tak sold the company to Hughes Aircraft.
Over the decades, he has founded, developed and successfully exited multiple businesses, expanding his entrepreneurial interests well beyond information technology.
He later established the ST Group to bring together his business interests across technology, energy, infrastructure, communications, manufacturing, real estate and hospitality.
His ventures have included power generation and refinery development in India, including a 250-megawatt thermal power plant in Neyveli through ST Power Systems.
Tak has also maintained ties with his alma mater and the Indian American community through educational support, philanthropy and institutional initiatives.
He has supported scholarships and engineering programs at the University at Buffalo and has been involved with organizations seeking to strengthen connections among business, education and communities.
Tak previously lived in Bethesda, Maryland, with his wife, Mahinder, before moving to Sunny Isles Beach, Florida, more than a decade ago.
Now, at 82, Tak is pursuing one of the largest projects of his entrepreneurial career, seeking to transform a proposed multibillion-dollar LNG facility into a major source of American energy exports.
If completed, the project would mark another milestone in a career that began in government contracting in the early 1970s and has since expanded across multiple industries and international markets.
(Mathew Tonni contributed to this report from Sunny Isles Beach, FL.)