Gov. Bobby Jindal and Maurice Brand, Magnolia LNG Managing Director and Joint Chief Executive Director, announced the company’s plans to develop a $2.2 billion natural gas liquefaction production and export facility at The Port of Lake Charles.
The LNG project would create 45 new permanent jobs, with an average salary of $75,000 per year, plus benefits. LED also estimates the project would result in 175 new indirect jobs. In addition, the LNG project would require an estimated 1,000 construction jobs.
The company expects to make a final investment decision to move forward with the project in late 2014, after it secures permits and completes financing. The mid-scale LNG facility would be located on 90 acres at the port’s Industrial Canal, off the Calcasieu Ship Channel. Magnolia LNG would produce 4 million metric tons of liquefied natural gas per year, and construction would begin in 2015 pending the company’s attainment of permits and final financing.
Gov. Jindal said, “Magnolia LNG’s decision to move forward in developing a new LNG facility is great news for our state. Magnolia is the latest company that is choosing to invest in Louisiana because we have one of the best business climates in the country and we are continuing to foster an environment where companies want to create jobs.
“We’ve fostered a strong business climate because we have overhauled our ethics laws, revamped workforce development programs, eliminated burdensome business taxes, instituted reforms to give every child an opportunity to get a great education, and now we are taking on tax reform in order to make Louisiana the best place in the world for businesses to invest and create jobs for our people. In addition to our strong business climate, Louisiana’s abundance of natural gas, pipelines and accessible waterways, as well as our outstanding workforce, were key factors in Magnolia’s decision to choose our state. Facilities like these will help create and sustain thousands of jobs in the energy industry across our state and will ensure quality jobs for Louisiana families for years to come.”
Magnolia’s project would be positioned for direct access to several existing gas pipelines. Using its patented Optimized Single Mixed Refrigerant process, or OSMR™, Magnolia LNG would produce liquefied natural gas more efficiently with fewer emissions than other LNG processes. OSMR adds conventional combined heat and power technology with industrial ammonia refrigeration to enhance the performance of the liquefaction process. Magnolia LNG would distribute to domestic markets as well as countries that have free trade agreements with the U.S. The company also will explore a potential expansion to 8 million metric tons per year in the future.
“Southwest Louisiana’s attractive infrastructure and strong workforce made Lake Charles an ideal location for our planned facility,” Brand said. “We especially want to thank the Port of Lake Charles Commission for their partnership in identifying such an ideal location for this project. Whilst the company remains focused on securing the appropriate contracts, agreements and permits, we expect to commence construction of our first U.S. venture by 2015.”
Magnolia LNG will seek federal Department of Energy free trade agreement approval in 2013. The company will submit a pre-filing application to the Federal Energy Regulatory Commission in March, before it completes the selection of project partners by June 2013. The company plans to begin hiring in early 2015, with commercial operations to begin in 2018.
“The Port of Lake Charles has been able to provide a unique combination of location, infrastructure and transportation capabilities to help bring this project to the region,” said Port Executive Director Bill Rase. “Magnolia LNG will be a significant and welcome addition to Southwest Louisiana’s energy corridor. The Port’s staff and board of commissioners look forward to doing business with the company.”
LED began working with Magnolia LNG in late 2012. The company’s proposed 90-acre site would include a long-term lease with The Port of Lake Charles. When Magnolia decides to proceed with construction, the company is anticipated to make use of LED incentive programs, such as the Quality Jobs Program and Industrial Tax Exemption Program.
“This project is another demonstration of our capacity for strengthening Southwest Louisiana and the state to become a stronger energy producer,” said President and CEO George Swift of the Southwest Louisiana Economic Development Alliance. “We are appreciative of Magnolia LNG to make this investment in our region and for the Port of Lake Charles to once again to serve as the catalyst for this project. We look forward to their final investment decision next year.”
- $2.2 Billion LNG Liquefaction Facility Announced for Port of Lake Charles (gcaptain.com)
- Bechtel wins FEED contract for Mozambique’s first LNG project (transportationandstorage.energy-business-review.com)
- South Korea: STX Launches Ultramodern LNG Carrier VELIKIY NOVGOROD (worldmaritimenews.com)
- Critics of LNG Exports Undermining Domestic, Global Strategic Benefits (fuelfix.com)
- Demand for LNG to Outstrip Supply in 2013 (247wallst.com)
Professor Mark J. Perry’s Blog for Economics and Finance
While the overall economy struggles to create jobs during another “jobless recovery,” it’s been a much rosier employment picture in one of America’s most successful “shovel-ready” job-creating industries: Oil and Gas Extraction.
The chart above displays the monthly percentage changes in employment levels since January 2007 for oil and gas extraction jobs compared to total nonfarm payroll jobs. As of January 2012, payroll employment is 3.3%, and 4.7 million jobs, below the month of January five years ago. In contrast, the explosion of new oil and gas jobs has increased employment in that industry by about 1/3 since January 2007. Over the last 12 months, oil and gas companies have added 23,200 new workers, at a rate of almost 100 new hires every business day.
Mike Brownfield January 6, 2012 at 10:40 am
Today’s jobs report from the Department of Labor was encouraging news for the U.S. economy. It shows that 200,000 jobs were created and the unemployment rate ticked down from 8.7 percent to 8.5 percent. Jobs were created in every sector of the economy save one — government! This report is consistent with other economic indicators and shows that the economy is finally coming out of its malaise. But like any reports, they must be put into context. The creation of 200,000 new jobs is solid growth and above the 130,000 to 150,000 new jobs that must be created to keep up with population growth. However, this doesn’t mean happy times are here again.
There are not enough Americans working or looking for work. In fact participation in the labor force is at its lowest point in 30 years as many potential workers are not yet even attempting to find jobs. Moreover, at this stage in a recovery, new jobs should be surging instead of averaging less than 140,000 for the last three months. So all is not well and President Obama should not check the “mission accomplished” box. In fact, Obama’s painful economic policies will only serve to further hamstring America’s economic engine, thereby preventing a truly strong, vibrant economy that the country is capable of having.
The President single-handedly unleashed another poison pill on Wednesday with the White House’s announcement that he will exact another illegal, unconstitutional end-run around Congress with the appointment of three new members to the National Labor Relations Board (NLRB) without Senate approval, all of whom are union officials. Here’s why that matters.
The NLRB is a five-member board that is responsible for investigating unfair labor practices, creating labor-related rules, and conducting elections for labor union representation. Last year the NLRB enacted measures shortening union elections to as little as 14 days, limiting employees’ ability to hear from both sides before they vote, allowing unions to cherry-pick which workers in a company can vote on unionizing, and preventing workers from insisting on a secret ballot in union drives, as Heritage’s James Sherk explains. These measures will make it much easier for unions to organize workers — but at the expense of workers’ rights. If workers want to join a union they have that right — management gets the union it deserves — but the government should not limit their rights in order to press workers into unionizing.
Prior to the President’s appointments, the NLRB had only three sitting members, with the one member’s term ending at the end of 2012. Were the NLRB to go down to two members, it wouldn’t have a quorum to conduct its business, meaning that the President’s Big Labor agenda couldn’t be enacted. Now, though, the President has appointed three new members who will undoubtedly carry out his agenda without any checks or balances.
And that agenda is to bolster America’s unions — a key constituency and political force standing behind the President. Unfortunately, their goal is not primarily to protect workers. The trouble is that the Big Labor agenda is fundamentally at odds with the pro-growth agenda that America is so thirsty for. Sherk explains:
Unions make businesses less competitive and discourage investment. This reduces job growth. Studies show that jobs fall by 5-10 percent at newly organized firms. Going forward, employment grows by three to four percentage points more slowly at unionized businesses than at otherwise identical non-union companies.
In short, America is witnessing President Obama put his Big Labor allies before workers, all in the guise of taking action on behalf of the American people. America’s job creators are sitting on the sidelines, as well, watching as this President takes actions that serve only to inject more poisonous uncertainty into the economy.
Apart from the economic ramifications of the President’s actions, the American people should also remember that his NLRB appointments are a blatantly unconstitutional, tyrannical abuse of power. The U.S. Constitution requires that the President receive the advice and consent of the Senate when making appointments — a requirement that President Obama entirely set aside in order to advance his agenda.
Today, the President may say he is finding success in fighting for the American worker, but in truth he is fighting for his political allies. Beneath the surface of his populist rhetoric, his policies are poisoning strong economic growth. And for the President, the Constitution is collateral damage.
- The Obama Administration is planning on a change to the nation’s immigration rules that would allow undocumented immigrants to remain in the United States while applying for citizenship.
- Was classified information leaked to filmmakers about how Osama bin Laden was killed? Representative Pete King (R-NY) says the Defense Department and the Central Intelligence Agency are investigating, according to The Hill.
- Twenty-five people were killed and dozens were wounded in Damascus, Syria, after a suicide bomber attacked a busy intersection. The explosion is the second attack in the Syrian capital in two weeks, The New York Times reports.
- Ready for a “gas-pocalypse”? The Los Angeles Times reports that record-high gas prices are headed even higher due to expensive oil and changes in refinery operations.
- LUNCHTIME CHAT: Join us today from 12-1 ET as we discuss the Stop Online Piracy Act. Find out how Congress’s actions might affect how you surf the Internet. Click here to join in!
- Obama defies lawmakers with recess appointments to NLRB (thehill.com)
- Obama Uses Recess Appointments to Keep NLRB Alive (crooksandliars.com)
- Union Bosses Applaud Obama’s Unconstitutional Appointments (actualgrit.wordpress.com)
- Obama NLRB Recess Appointments Thrill Labor, Infuriate Business – more signs that Obama has been unleashed? : 0) (jhaines6.wordpress.com)
- Obama Again Bypasses Congress, Appoints 3 To Labor Board (foxnews.com)
- Obama defies lawmakers with recess appointments to NLRB (whoopsies.wordpress.com)
- Romney Ad for S.C. Slams NLRB (blogs.wsj.com)
Image: Mark J. Perry
Of course, people are going to try to draw all kinds of different lessons from this chart. For example, some will see it as a sign that we’re in a golden-age of technological productivity, that’s allowed the overall economy to prosper, while a cohort of unemployable, skill-less workers suffer.
There’s also a political angle, namely that the needs of workers are obviously not in alignment with the interests of corporate America: Remember, the corollary to that record GDP is record corporate profits, as seen here.
Regardless of the root cause of the disconnect, this is a real and growing problem, as the lack of jobs translates into political strife, and perhaps even unrest.
- Income Inequality, Economic Mobility, and Investment (thewesternexperience.com)
- Kevin L: The “Imaginary Hobgoblin” of Income Inequality (mjperry.blogspot.com)
- CHART OF THE DAY: Keep This Chart Handy, And You’ll Know When Greece Is About To Blow Up (businessinsider.com)
- Recession? No. We’re In The Second Great Contraction (businessinsider.com)