Louisiana residents should be interested to know that the state’s governor has confirmed that an area in the vicinity of Lake Charles will be the planned future site of a new natural gas liquification plant. The plant site will also house an export terminal. The growth of business in LA is generally good for the state’s economic forecast.
Both the plant and export terminal are expected to cost an estimated $2 billion and to create about 100 new jobs. In addition, the project is also expected to generate around another 550 new construction jobs. Currently, the plant is slated to be completed at the end of 2019.
This new development came as a welcome reprieve on the heels of an announcement by a South African oil company, Sasol, less than a week earlier that it was delaying its plans to build a $14 billion plant. That plant was designed to process natural gas and convert it to multiple different liquid fuels, such as diesel.
The company announced that the plant will likely cover an estimated 350 acres of land and will be located on the Calcasieu Ship Channel’s west bank, which also happens to be the same waterway where Sasol is expecting to break ground with its $14 billion plant. The plant will be able to store and process up to five million metric tons of products annually. Additionally, it will also house two separate storage tanks that will allow the plant the capability of storing 130,000 cubic meters of liquefied natural gas on site.
The state was able to attract the company and convince it to locate its operation in Louisiana by offering it a lucrative incentive package, which included offering the company a deduction on its local property taxes, along with a cash rebate of between five and six percent of the company’s expected annual gross payroll that is directly contingent on creating new jobs. The incentive package will stay in effect for at least a decade.
As with any business deal, business law issues and compliance with existing regulations becomes important. To prevent or minimize legal complications and disputes, it may be helpful to have a business lawyer look out for one’s business interests.
Source: Express-News, “Texas startup plans $2B La natural gas liquification plant,” Feb. 3, 2015