Venture Global LNG officials and Gov. John Bel Edwards today announced the company plans to build an $8.5 billion natural gas liquefaction and LNG export terminal in Plaquemines Parish.
The complex will be Venture Global’s second major natural gas liquefaction and export project in Louisiana. The company also is developing the $4.5 billion Calcasieu Pass project in Cameron Parish.
Construction on the Plaquemines LNG complex is expected to begin in 2018, once the project is authorized by the Federal Energy Regulatory Commission. Full operations are expected to begin in 2022.
Located on a 632-acre site on the west bank of the Mississippi River about 30 miles south of New Orleans, the complex will have a planned export capacity of 20 million metric tons per year.
“The long-term prospects for the U.S. natural gas industry are bright, and Louisiana is well-positioned to capitalize on that success with ready access to natural gas supplies and deepwater access for shipping LNG to destinations worldwide,” Edwards says in a prepared statement. “This facility will have a major impact on the local and regional economy, with hundreds of new high-paying jobs for our skilled workforce.”
Louisiana Economic Development estimates the Plaquemines project will create 250 new direct jobs at an average annual salary of $70,000 per year, plus benefits, as well as 728 new indirect jobs and 2,200 construction jobs.
The company is expected to utilize the state’s Louisiana Quality Jobs and Industrial Tax Exemption programs. The Quality Jobs Program provides a 6% cash rebate on 80% of a company’s gross payroll for new direct jobs for up to a decade. But effective July 1, 2018, the rebate is available on 100% of gross annual payroll.
The Industrial Tax Exemption Program, which has undergone a number of changes this year, offers a full abatement of local property taxes on eligible new building and equipment expenditures for up to 10 years.
According to a news release, LED began discussions with Venture Global about the Plaquemines Parish project after the company’s announcement of the Calcasieu Pass LNG project in late 2014. Production at that facility could begin by late 2019, with full operations projected to start in 2020.