The announced pause on future LNG plants is unwise and unnecessary.

Louisiana’s Federal Legislators have sharply criticized this move. U.S. House Speaker Mike Johnson and Louisiana Senators Bill Cassidy and John Kennedy said the decision to delay permits for the LNG export terminal in Cameron Parish and others harms the Louisiana and U.S. economy and empowers Russia by expanding demand for that country’s liquefied natural gas. Senator Kennedy, the ranking member of the Energy and Water Subcommittee, said in the Wall Street Journal, that he will block all of President Biden’s nominees to the State Department and Department of Energy until the administration stops this hostility towards the LNG production. Congressman Clay Higgins said “ this decision will weaken our energy & national security, jeopardize good paying jobs, and threaten the supply of American LNG to our allies overseas.”

The Biden Administration’s decision has far-reaching consequences because LNG and SWLA have a symbiotic relationship. LNG has been part of the SWLA economic tapestry since 1981. The Lake Charles MSA (Calcasieu and Cameron parishes) has
become a strategic area of LNG expansion and investment due to our region's extensive pipeline system, the Calcasieu River Ship Channel, workforce, and a strong community connection to industry going back to the early 1900s.

Today, Cheniere/Sabine Pass LNG, Sempra/Cameron LNG, and Venture Global are exporting this important product to the world market. According to the Lake Area Industry Alliance, those three companies combined total a $34.5 billion investment in
our region which created 1,085 permanent direct jobs paying $27 million in property taxes.

Commonwealth LNG, Magnolia LNG, Lake Charles LNG, and Venture Global CP2 are affected due to the Biden Freeze. Those companies' collective investments would total about $30 billion.

Dr. Loren Scott, Louisiana economist, said if final investment decisions related to now frozen LNG projects are decided, 7,200 jobs would be created by 2025. Those jobs, both direct and indirect, are tied to expanded housing development, increased sales tax collection, more small business development opportunities, and a stronger regional education system. Permitted projects can continue.

LNG companies have supported local schools, McNeese State University, and SOWELA Technical Community College. Local LNGs are also supporting the development of the LNG Center of Excellence at McNeese to help our region grow its footprint in LNG and energy academic circles.

SWLA is in the midst of rebuilding itself with our strong industrial, aviation, hospitality, ag and forestry, maritime, and health sectors. LNG represents growth and progress. The Chamber SWLA strongly disagrees with the Biden Administration’s decision to
pause LNG projects. This decision has unintended consequences which impact our local Main Street community. SWLA is in the early stages of a clean energy future. Our office is working with developers and innovators to pave the way for solar, wind and hydrogen energy development.

Natural gas is a clean source of fuel. According to McKinsey, between 2007 and 2019, gas to power in the United States grew by 70 percent during that same period CO2 emissions dropped by 14 percent.  It will be years before we reach 100 percent
renewable energy production. Natural gas is the bridge fuel we need to maintain our energy independence.

At a hearing of the U.S. House Committee on Energy and Commerce, Chamber SWLA SR. VP Eric Cormier is scheduled to testify today in our nation’s capitol, as to the negative impact of this pause to our world energy supply and to our regional economy.   

We agree we must reduce our carbon footprint, but do so in a pragmatic and thoughtful manner.

SWLA is the epicenter of America’s LNG complex. We are a people that are moving forward amid trials and tribulations wrought by nature. We all benefit from progress and Americans are known to solve complex problems. Mr. President, let these companies and SWLA residents move forward and remain a leader in energy production and innovation.