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Wednesday, April 17, 2019

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Company plans $800 million LNG plant at Port Fourchon

Company plans $800 million LNG plant at Port Fourchon

GALLIANO, La. (AP) — Officials are planning an $800 million liquefied natural gas plant and export terminal at Port Fourchon.

The Greater Lafourche Port Commission and one of the port's tenants, Energy World USA, announced the proposed development Tuesday in a news release.

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 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 announcement comes as the Houma-Thibodaux area continues to reel from an oil bust that has stripped an estimated 12,000 jobs from the local economy since mid-2014.

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.

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.

Job estimates and a project timeline have not been finalized, but Chiasson estimated a few hundred construction jobs would be created, as well as a few dozen permanent jobs once the project is completed.