Live Oak LNG will invest $2 billion to develop a liquefaction facility and liquefied natural gas export terminal near Lake Charles, Louisiana. The plant will be constructed on the Calcasieu Ship Channel, which connects the Lake Charles industrial region to worldwide markets via the Gulf of Mexico and is expected to create 100 jobs in the region.
“Live Oak LNG is an innovative, efficient and cost-effective way to safely deliver LNG in smaller quantities that buyers can purchase incrementally,” Live Oak LNG Chairman Martin Houston said. “Having worked in Louisiana in the past, I know that Louisiana is a great place to do business. We will be working hand in hand with the community and government officials to ensure this new project brings economic benefit, business opportunities and jobs to Calcasieu Parish. We appreciate the incentives available and the support of local officials who have already provided a wealth of information.”
Live Oak LNG is a subsidiary of Houston-based Parallax Energy, which was launched last year to develop global LNG projects and a natural gas supply and trading business. The mid-sized Live Oak project will be designed for a plant capacity of up to 5 million metric tons per year and will include two storage tanks capable of holding 130,000 cubic meters of liquefied natural gas, along with port facilities to accommodate standard-sized LNG carriers. The project will be located on the west bank of the Calcasieu Ship Channel, southwest of Lake Charles, on a tract of approximately 350 acres.
To secure the project, the state will offer a competitive incentive package that includes utilization of the state’s Quality Jobs and Industrial Tax Exemption programs. Live Oak will begin the federal permitting process within the next few weeks. Once permits are secured from the Federal Energy Regulatory Commission, expected by late 2016, construction will begin.
Governor Bobby Jindal said, “This investment by Live Oak LNG is a welcome addition to the wealth of major industrial projects in Southwest Louisiana that are capitalizing on our state’s energy infrastructure and our outstanding, skilled workforce. The global demand for affordable, American-produced liquefied natural gas is on the rise, and Calcasieu Parish is ideally situated to serve that market with its deepwater ports and access to natural gas supplies.”
“Deepwater port access and proximity to one of the United States’ major natural gas pipeline hubs are making such projects attractive for developers in Calcasieu and Cameron parishes as domestic natural gas production increases,” said George Swift, President/CEO of the Southwest Louisiana Economic Development Alliance. “This new project is very welcome and demonstrates that Southwest Louisiana can continue to attract new companies. We look forward to working with Live Oak LNG to assist them in any way possible.”