G2 LNG LLC announced plans Monday to build an $11 billion natural gas liquefaction facility in Cameron Parish that will be able to export 15.4 million tons of LNG per year.
The project on the Calcasieu River Ship Channel will be the fourth-largest capital investment in Louisiana history, according to G2 LNG. The project is expected to support 3,500 construction jobs and create more than 250 permanent jobs, averaging over $85,000 per year.
G2’s leadership consists of former Louisiana Gov. Buddy Roemer, G2’s chairman and a founder of Business First Bank; President Thomas Hudson, an attorney, former Louisiana state senator and former chief of staff for former U.S. Sen. John Breaux; Executive Vice President Eugene Ji, a Baton Rouge businessman and one of the founders of Business First Bank; and Nebojsa Bukumarovich, vice president-Europe, a trade expert, entrepreneur and member of the 1986 LSU NCAA Final Four basketball team.
Roemer said the Louisiana-owned company is already in “advanced discussions” with potential customers in Asia, Europe, India and the Caribbean.
The facility will have access to plentiful supplies of natural gas, allowing G2 to provide customers with stable, long-term, low-cost natural gas, he said.
“The Calcasieu River Ship Channel and Cameron Parish are the ideal location for this project,” Hudson said. “We are three miles from the Gulf of Mexico on a 42-foot-deep channel. Extensive interstate and intrastate natural gas pipeline systems traverse Cameron Parish, giving us access to both conventional and unconventional shale gas on a firm or spot price basis. And, we are thankful to have the unwavering support of local, state and business officials.”
G2 filed applications in March 2015 with the U.S. Department of Energy to export to Free Trade Agreement and non-Free Trade Agreement countries. In July, G2 LNG was granted its license to export to FTA countries.
A decision from DOE on the non-Free Trade application is expected in 2017. LNG prices are much higher in the countries that aren’t covered by Free Trade Agreements, particularly in Asia.
G2 said it expects to begin the Federal Energy Regulatory Commission prefiling process within the next 30 days.
Once FERC approvals and DOE licenses are granted, construction of the facility can begin. G2 LNG is expecting construction to start mid-2017, with the facility coming online for delivery in 2020.
G2’s is the 10th export facility announced in Louisiana, with two under construction, according to FERC records.