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Southwest Louisiana at the Forefront of America’s Clean Energy Revolution: LNG Leads the Way

Posted by: Eric Cormier on Tuesday, March 29, 2022

Last week, the Southwest Louisiana Economic Development Alliance/Chamber SWLA released a statement in support of LNG industry and future efforts to provide natural gas to European countries.

The Alliance/Chamber SWLA is encouraging the Biden administration to “utilize resources in support of LNG facility projects by streamlining permitting processes and other means in order for the industry to grow and meet energy and national security demands.”

Our federal government has announced an agreement to supply the European Union with 15 billion cubic meters of liquefied natural gas by the end of 2022 in order to offset the natural gas supply from Russia as a result of that country’s aggressive actions against Ukraine.

Southwest Louisiana sits in an economic strategic position due to current LNG expansion.

Houston area LNG industry insider Maury Hudson, owner of Ferro Spiritum 73, LLC (Consulting and Energy Solutions), shared his insights with the Alliance/Chamber SWLA recently.

“At the end of 2021, the U.S. surpassed Australia and Qatar as the largest exporter of LNG globally. Since that time, Venture Global Calcasieu Pass and Cheniere Sabine Pass Train 6 have begun production. Once Venture Global reaches full capacity, the State of Louisiana, which is home to Cheniere Sabine Pass, Cameron LNG in Hackberry, and Venture Global Calcasieu Pass, will be responsible for nearly 60 percent of the peak U.S. LNG production capacity,” he said.

Hudson explained that, “there are five more grassroots and expansion projects approved by FERC (Federal Energy Regulatory Commission) in Louisiana with a capacity, if they were all constructed, to process and additional 12.2 bcfd (billion cubic feet per day) of natural gas, slightly more than the average of 11.4 bcfd exported in January 2022 per the Energy Information Administration (EIA) numbers.”

Prior to the war in Eastern Europe, the LNG industry was investing in Louisiana.

According to Hudson, the Bayou state has important assets.

“There are obvious answers like access to major natural gas pipeline networks and a well-maintained ship channel.  But, there are other places that have those things.  I think the primary thing that makes Louisiana a prime locale for LNG expansion is the people,” he said.

“Louisiana has a long history in oil, gas, and chemicals.  Almost everyone from the local barber to the legislators in Baton Rouge understands that these industries can operate safely and can coexist with communities and the environment while raising the standard of living.  I’ve spent a lot of time in the State of Louisiana, and I’ve seldom met a person that didn’t have the best interests of the greater community in mind.  People make all the difference.”

Southwest Louisiana’s relationship with industry started in the 20th century. The bond has strengthened in the 21st century. Our area is positioned to be the LNG export capital of the world which means the actions here are paramount to the nation’s business and security interest. Also, we are now on the cutting edge of clean energy innovation.

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