French energy company Engie SA has decided to end negotiations to buy liquefied natural gas (LNG) from the proposed Rio Grande LNG facility in Texas because of French government concerns over hydraulic fracturing (fracking).

Bloomberg reported Tuesday that a spokeswoman at Houston-based NextDecade Corp., which owns the Rio Grande LNG project, said Engie decided to no longer pursue commercial discussions.

NextDecade declined to comment to NGI about the matter.

Engie’s board last month decided to further investigate the environmental implications of the potential $7 billion, 20-year contract before deciding whether to fund it.  The government owns a 23.63% share in the company. The proposed deal was slated to run until 2045, meaning that exports would have started in...