Proposed development of $800 M LNG facility in Port Fourchon
Posted: Feb 02, 2017 4:21 AM <em class="wnDate">Wednesday, February 1, 2017 1:21 PM EST</em>Updated: Feb 02, 2017 4:21 AM <em class="wnDate">Wednesday, February 1, 2017 1:21 PM EST</em>
GALLIANO, LA - Today the Greater Lafourche Port Commission (GLPC) and tenant Energy World USA announced the proposed development of a mid-scale liquefied natural gas (LNG) production and export facility at Port Fourchon.
Energy World USA's proposed facility will eventually produce up to 2 million tons of LNG per year for export, as well as operate a separate smaller scale liquefaction plant geared towards providing LNG to fuel the next generation of Offshore Supply Vessels (OSVs) powered by LNG and operating in the Gulf of Mexico.
"While it is still very early in the planning and regulatory process, we are excited to be able to tell the community and our tenants about this potential opportunity to continue to keep Port Fourchon at the very cutting edge of the oil and gas services industry," said Chett Chiasson, Executive Director of GLPC. "We feel that this is a great addition to the suite of vessel services that are offered by our tenants and greatly enhances our capability and versatility as the premier services hub for the oil and gas industry. We have been working with Energy World since April 2016 when they first approached us about this proposed facility, and we are happy to be able to share these latest developments with the community," Chiasson added.
The facility would be constructed on a site of up to 150 acres located on port-owned property to the west of Belle Pass, which is located outside of the existing port development.
The project developer, Energy World (USA) Inc., is part of the Energy World International Ltd. (EWI) group of companies. The EWI group is engaged in the business of developing, constructing and operating in property investment, infrastructure, power generation and energy related projects. EWI has a controlling interest in the Australian public company Energy World Corporation (EWC).
"The Energy World family of companies has over 20 years' experience in the safe production, storage, transportation and delivery of LNG to its customers in Australia, Indonesia and the Philippines, and we are looking forward to bringing this expertise to Port Fourchon," said Kevin Blount, President of Energy World USA.
"With the recent arrival of Energy World's LNG Carrier "Ocean Quest" at our LNG Hub Terminal in the Philippines we have completed a key part of our vision for bringing clean and economic energy to Asia. Energy World is now in complete control of its own destiny from gas in the ground to liquefaction or spot market purchases, transport, storage, re-gasification and the production of electricity, providing access to offtake agreements for the LNG we produce. The LNG produced at Port Fourchon will initially be exported to our own gas-fired power plants right across the Asia-Pacific region and also be sold into U.S. domestic markets for marine applications. Eventually, we hope to export to Jamaica and the wider Caribbean where Energy World is separately proposing to develop a LNG hub terminal and gas-fired power plants consistent with our goal of delivering clean and affordable electricity to developing countries on a global platform," added Stewart Elliott, Chairman and CEO of Energy World Corporation.
The proposed facility could represent an investment of upwards of $800 million, making it the largest single initial investment in the history of both Port Fourchon and Lafourche Parish.
"With as much as our workers and residents have been hurting lately, this project could be a great opportunity for our local economy, bringing hundreds of jobs during the construction phase, and dozens of good-paying permanent jobs once they are up and running, which will result in Lafourche Parish being able to hang on to our young families and workers," said Lafourche Parish President Jimmy Cantrelle.
In the coming weeks, GLPC will begin a Waterway Suitability Assessment with the US Coast Guard, which will help to ensure that current and future port activities are not adversely affected by the operation of the potential facility. This document will also serve to support Energy World's forthcoming application to the Federal Energy Regulatory Commission (FERC) for project approval.
"We understand that our existing tenants are the heart and soul of our community's economic development and future growth, and we are happy to welcome Energy World to this community today," said GLPC Board President Perry Gisclair.
"We take our role as advocate for our existing tenants and the offshore service industry seriously, and we are working very closely with both the US Coast Guard and Energy World to ensure that vessel traffic in and out of the port will continue to grow through this development and our other expansion plans stretching far into the future," Gisclair added.
With the assistance of the Director of Economic Development for Lafourche Parish Government, the South Louisiana Economic Council (SLEC) is working with the Louisiana Department of Economic Development (LED) to identify potential business and tax incentives to help ensure that the project is constructed in Louisiana's Bayou Region.
Additionally, Vic Lafont, of the South Louisiana Economic Council added:
"This over $800 million investment is still yet another example of how our Ports and waterways are some the greatest strengths and assets of the Bayou Region. This investment at Port Fourchon paves the way for the next-generation development of not only the Port, but of the Offshore Service Industry across the board. This means hundreds of construction jobs to build the LNG complex and dozens of full time permanent workers once the LNG conversion and export facility is operational. Located in Lafourche Parish, it is hoped that these proposed facilities help to spur the investment in additional LNG powered vessel retrofitting and shipbuilding right across the Bayou Region at shipyards and marine fabrication facilities. A far cry from what we're suffering through the recent down turn in the oil and gas industry."
EWC Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
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