Newsday, Texas — The NYMEx Natural Gas Corp. announced Tuesday it is pulling out of its natural gas lease with New Mexico’s biggest natural gas producer, a deal that would have allowed it to build a $4 billion natural gas export terminal in the state.
The New Mexico Natural Gas Commission said in a statement that it is “not able to proceed with the development of the terminal.”
NYMX spokeswoman Sarah Kelleher said the company is withdrawing the lease to allow for the development, which was the first phase of the proposed $2.5 billion terminal.
The deal, which would have generated $4.8 billion in taxes and royalties, was signed by New Mexico Gov.
Susana Martinez, former Gov.
Gary Johnson and New York Gov.
Andrew Cuomo in December.
The companies agreed to build the terminal in 2018 but said they needed more time to work out a deal.
New York’s largest gas company, New York Power & Gas, said it also is withdrawing its lease from the terminal.
A spokeswoman for NYMx, which is headquartered in Fort Worth, Texas, said the decision to withdraw was not related to the natural gas project.
NYM was not the first company to pull out of the natural-gas lease with NYMG.
In February, Marathon Petroleum pulled out of a $1.4 billion deal to buy the Los Angeles-based company for $1 billion.