Southwest Louisiana is in the national and international eye due to our region’s connection to liquified natural gas (LNG).

     If there was ever a moment when that realization became extremely apparent, it occurred inside the confines of a United States House of Representatives Committee room.

     Republicans scheduled a hearing for a subcommittee of the House Energy and Commerce Committee. “Politics Over People: How Biden’s LNG Export Ban Threatens America’s Energy and Economic Security” was the title of the proceeding.

     Four panelists were invited to testify:

• Toby Z. Rice, President and CEO, EQT Corporation
• Brigham McCown – Senior Fellow and Director, Initiative on American Energy Security, the Hudson Institute
• Gillian Giannetti – Senior Attorney, Natural Resources Defense Council
• Eric Cormier – Senior Vice President of Entrepreneurship and Strategic Initiatives, Southwest Louisiana Economic Development Alliance/Chamber SWLA.

     Here is some background provided by the committee staff.

     Currently, the United States is the world’s number one producer of oil and natural gas, and the number one exporter of liquified natural gas (LNG).

     “Under both Democratic and Republican administrations, the Department of Energy (DOE) has consistently found that U.S. LNG exports serve the ‘public interest’ because they contribute positive economic benefits and strengthen energy security for American people, and also have the potential to reduce global greenhouse gas emissions.”

     The staff report also stated, “DOE has also studied the environmental effects of natural gas production and LNG exports, finding that U.S. LNG production and exports are the cleanest in the world.”

     In a press release on January 27, 2024 the Biden administration “announced a temporary pause on pending decisions for exports of Liquefied Natural Gas. During this period, the Department of Energy will evaluate the impacts of LNG exports on energy costs, America’s energy security and climate change – the existential threat of our time.”

     Rice, McCown and myself testified that the administration’s is and will have a negative impact on the development of at least 16 proposed LNG facilities.

     At the moment 16 LNG projects are awaiting a DOE license.

     Energy Intelligence states, “Four are considered the most impacted: Sempra’s Port Arthur Phase II in Texas; the SeaOne Gulfport development in Mississippi; and the Commonwealth and Magnolia LNG facilities in Louisiana. This quartet already has permitting approvals from the United States Federal Regulatory Energy Commission (FERC) in hand, and thus only needs DOE license approvals to move ahead with crucial non-Free Trade Agreement exports.”

     Two other LNG projects in our region – Lake Charles LNG and Venture Global (CPS) – are halted now too.

     My testimony focused on our region’s Main Street Community.

     “On January 26, 2024, when the administration announced its decision, my cell phone rang quite a bit. It was members of our regional Main Street calling. Small business owners were panicking. These folks built business plans for the expected final investment decisions for Ventura Global’s CP2, Commonwealth LNG, Magnolia LNG and Lake Charles LNG -- representing $28.5 billion in proposed projects,” I said.

     Also, I stated, “LNG companies have supported local schools and McNeese State University and SOWELA Technical Community College. This community partnership is helping our region grow its footprint in LNG and energy academic circles.”

     There is more to share about this issue. We want our five-parish community to know, your Alliance/Chamber SWLA is in the fight to support and protect all our businesses.

     I am privileged to have been selected to speak on behalf of my home town and area.    

     More is to come regarding the LNG conversation!

Eric Cormier serves as Senior Vice President of Entrepreneurship and Strategic Initiatives at the Southwest Louisiana Economic Development Alliance (Business Incubator of SWLA)/Chamber SWLA. He can be contacted at 337-433-0799 or ecormier@allianceswla.org.