In a feature from the new issue of 10/12 Industry Report, a publication of Business Report that will be published quarterly beginning next year, LSU Center for Energy Studies Executive Director David Dismukes provides insight into the opportunities and challenges for natural gas exporting from Louisiana.
To date, over 50 LNG export proposals—amounting to over 50 billion cubic feet per day of export capacity—have been announced or are under development, a large part of which is anticipated to be in Louisiana, Dismukes notes. All told, these LNG export projects represent anywhere between $20 billion and $50 billion in economic development opportunities for the state, positioning it into becoming a global leader in the trade of natural gas.
“Not all of this capacity, however, will get developed,” writes Dismukes. “World energy markets are in a state of transition. LNG export facilities will continue to face a number of risks, particularly in the short run. However, the long-run outlook for these facilities looks very favorable and supportive of continued development.”
Dismukes says new LNG export facilities face a variety of risks, including weak global energy commodity prices, contracting risks, project development difficulties, and regulatory and policy hurdles.
“All told, Louisiana is sitting on a considerable, game-changing opportunity to serve as an international hub for natural gas trade,” Dismukes writes, further noting: “There are some concerns that the ‘law of one price’ will drive currently low-cost U.S. domestic natural gas prices up to global levels, potentially threatening over $100 billion in new industrial development activity in the U.S.”
Read the full feature. Send your comments to editor@1012industryreport.com. And be sure to check out more stories from the current issue of 10/12 Industry Report, including the cover story in which the magazine sits down with each of the four leading candidates for governor to discuss their plans for addressing industrial issues if elected.
