Plaquemines Parish officials have signed an agreement with Louisiana LNG Energy LLC that allows for negotiations to help move forward the company’s proposed liquefied natural gas export terminal in the parish.
The parish and the company said they plan to file applications with the Louisiana Department of Economic Development for economic incentives for the project, which is expected to be online in late 2017. A final investment decision by the company isn’t expected until January, parish officials said.
Separately, Louisiana LNG Energy said Tuesday that it has selected Bechtel Oil, Gas and Chemicals Inc. to do front-end engineering and design work for the proposed terminal. The project will make use of modular construction to speed up its construction and allow expansions.
“Bechtel brings world-class expertise in the engineering, design and construction of LNG liquefaction projects coupled with leadership in modularization and Gulf Coast self-perform work,” said Jim Lindsay, chief executive officer of Louisiana LNG Energy LLC in Houston.
The proposed facility was announced earlier this year.
Plaquemines Parish President Billy Nungesser and Councilman P.V. Griffin, of District 1, where the facility will be located, said they fully support the project.
In February, Louisiana LNG Energy asked the federal government for permission to export 2.2 million tons of liquefied natural gas each year for the next 25 years. In May, the company said it has secured funding from an affiliate of ArcLight Capital Partners LLC for its LNG export terminal.
The company has leased about 200 acres of land near the end of La. 14 and La. 39 on Plaquemines Parish’s east bank near Pointe a la Hache. Its initial lease is good through May 31, 2016, with options to renew the lease with Morgan City Land & Fur Co., of New Orleans, through 2091.
Louisiana LNG Energy Inc. said it has filed an application with the Federal Energy Regulatory Commission to obtain a permit to construct the project.