$2 Billion LNG Plant, Export Terminal Planned in Louisiana
Live Oak LNG, a fully owned subsidiary of Parallax Energy, plans to build a $2-billion natural-gas liquefaction and export project near Lake Charles, La. Project teams are completing initial study work, which will be followed by federal and state permitting processes.
"We anticipate completing the initial definition phase and applying for FERC permits within the next few weeks," says Martin Houston, chairman of Parallax Energy and Live Oak.
"In addition, we believe we will receive notice to proceed from FERC and the state agencies sometime during the second half of 2016. We look forward to using the fast-track permitting offered by the state of Louisiana," Houston says.
The plant will have a production capacity of up to 5 million tonnes per year and include two 130,000-cu-meter storage tanks, along with port facilities.
The project is sited on 350 acres on the west bank of the Calcasieu River in Calcasieu Parish.
"As soon as we receive notice to proceed from FERC and the state agencies, we will begin construction," Houston says. "We anticipate … construction taking approximately 36 months. We are targeting first LNG in 2019."
Bechtel has been awarded the pre-engineering and design contract, Houston adds. "Once we get further along with the design work, we will select a general contractor and other team members," he says. The company anticipates up to 1,000 jobs during construction peak.
"Safety, low cost and efficiency are the primary goals for delivery of the project," Houston says. "The strategic partnership with Bechtel will ensure the timely and cost-efficient delivery of Live Oak LNG."
The owner plans to apply for both FTA and non-FTA permits, and the firm is already in discussions with potential buyers, Houston says.
The new plant is "well positioned in close proximity to substantial gas pipeline infrastructure," Houston adds. "Within five miles of the proposed location are three major pipeline systems representing 4.5 bcf/d of deliverability."