A Houston-based company announced plans Tuesday to invest $2 billion for a liquefaction facility and liquefied natural gas export terminal near Lake Charles.

The Live Oak LNG project will create 100 new direct jobs at the liquefaction and export facility, with an average annual salary of $75,000, plus benefits. Louisiana Economic Development estimates the project also will result in 385 new indirect jobs, for a total of 485 new permanent jobs in Calcasieu Parish and surrounding parishes in the Southwest Region. In addition, the LNG project will generate an estimated 1,000 construction jobs at peak building activity.

The plant will be constructed on the Calcasieu Ship Channel, which connects the Lake Charles industrial region to worldwide markets via the Gulf of Mexico.

Live Oak is a subsidiary of Houston-based Parallax Energy, which was launched last year to develop global LNG projects and a natural gas supply and trading business. The mid-sized Live Oak project will be designed for a plant capacity of up to 5 million metric tons per year and will include two storage tanks capable of holding 130,000 cubic meters of liquefied natural gas, along with port facilities to accommodate standard-sized LNG carriers. The project will be located on the west bank of the Calcasieu Ship Channel, southwest of Lake Charles, on a tract of approximately 350 acres.

ā€œLive Oak LNG is an innovative, efficient and cost-effective way to safely deliver LNG in smaller quantities that buyers can purchase incrementally,ā€ said Martin Houston, Live Oak chairman.

Live Oak will begin the federal permitting process within the next few weeks. Once permits are secured from the Federal Energy Regulatory Commission, expected by late 2016, construction will begin. Construction jobs are expected to peak at 1,000 during the three-year building phase, and the plant is targeted to begin operations in late 2019.

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