Calcasieu Pass

Calcasieu Pass

Venture Global Calcasieu Pass, LLC is developing a liquefied natural gas (LNG) export facility in Cameron Parish, Louisiana, south of the city of Lake Charles. The project site is at an ideal location on the Calcasieu Ship Channel, featuring deep-water access, proximity to plentiful gas supplies and ease of transport for buyers.

A World-Class Investment
Supporting Louisiana’s Energy Industrial Base

Calcasieu Pass will invest billions in new facilities, equipment and labor. Calcasieu Pass will bring thousands of temporary and hundreds of permanent jobs for southwestern Louisiana. In addition, the project’s exports will support the balance of trade for the United States.

Used with permission of Chart Energy & Chemicals, Inc.

Local Jobs and Community Engagement

The design, engineering and construction of the project will create approximately 1,500 jobs at peak construction. The expected number of long-term, direct jobs created by the project is 130.

The expected economic impact and employment numbers for Louisiana are:

  • 130 direct jobs;
  • 326 indirect jobs;
  • 1,500 construction jobs at peak construction;
  • Average annual salary of $70,000 excluding benefits.
Hiring is planned to start mid to late 2016.

 

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Project Location

Calcasieu Pass Plot Plan
Calcasieu Pass Plot Plan

The 1000-acre project site is located where the Calcasieu Ship Channel meets the Gulf of Mexico. This location is in close proximity to several major interstate natural gas pipelines and is situated in the middle of one of the most active trading areas for pipeline-quality natural gas in North America.

The project site is secured under exclusive agreements for up to a 70-year term. Pending regulatory approval, construction is planned to take place from 2016-2019.

Venture Global enters LNG SPA with Shell

Venture Global LNG Inc. has announced that its subsidiary, Venture Global Calcasieu Pass LLC, has entered a sales and purchase agreement (SPA) with Shell NA LNG LLC. Under the agreement, Shell has agreed to purchase 1 million tpy of LNG over a 20-year period from Venture Global Calcasieu Pass’ facility, which is being developed in Cameron Parish, Louisiana, US. The agreement will take effect once the facility begins commercial operations, and will see shell purchase the LNG on a free on board basis (FOB) for a purchase price that will be indexed to monthly Henry Hub prices, as well a facility fee indexed to inflation.

The Co-CEOs of Venture Global LNG, Mike Sabel and Bob Pender, said: “Venture Global LNG considers the Shell 20-year SPA to be an important milestone for the company. We are delighted that we continue to achieve our promised milestones as we implement our strategy to become the lowest cost producer of LNG in the world.”

Venture Global LNG is developing two facilities. The first is the 10 million tpy Venture Global Calcasieu Pass facility, which is located on a 1000 acre (approximately) site at the intersection between the Gulf of Mexico and Calcasieu Ship Channel. The second is the 20 million tpy Venture Global Plaquemines LNG facility, which is located on a 630 acre site in Plaquemines Parish at river mile marker 55 on the Mississippi River.

Logistics Networks Are Getting Back On Track

[…]
Southwest Louisiana is in the midst of becoming the Clean Energy Capital of the World. SWLA is busy installing the infrastructure the soon will make the region the largest exporting hub for liquefied natural gas (LNG) in North America.

The area consists of five parishes Allen, Beauregard, Calcasieu, Cameron and Jeff Davis. As a whole, the region is located near the Sabine River, which makes the state of Texas our nearest neighbor. Professionals in the academic world contend that Southwest Louisiana is part of the Houston Megalopolis.

SWLA’s claim to the title of Clean Energy Capital of the World is backed by an unmatched surge in natural gas production. Currently, the region has $90 billion in announced development projects, leading the nation Eight LNG export terminals are in the process of being constructed or close to breaking ground in the region: Cheniere LNG ($20 billion); Cameron LNG ($10 billion); Lake Charles LNG/BG ($10 billion); Southern California Telephone and Electric LNG ($9.25 billion); Venture Global LNG ($4.25 billion); Magnolia LNG ($3.5 billion); Live Oak LNG ($2 billion); and Commonwealth LNG ($200 million).

Added to those projects are two liquid-to-gas facilities that have been announced, including Sasol North America ($14 billion) and Juniper GTL ($100 million). Other major projects include: Sasol Ethanol Cracker ($8.9 billion); Axiall/Lotte ($3 billion); Big Lake Fuels/G2X $1.6 billion; Lakes at Morganfield ($495 million); Westlake Chemical ($330 million); Bell Savanne ($270 million); Port of Lake Charles/IFG Holdings ($192 million); ART ($135 million); and Packaging of America ($111 million).

“We are excited about the opportunity that has been created due to all of the industrial development that is happening in our region,” said George Swift, president and CEO of the Southwest Louisiana Economic Development Alliance. “At the turn of the new century, nobody in our area would have thought that the possibility of everyone living here would have the chance to make a decent wage or start a business in a diversified market would exist.”

Lake Charles is the largest city in the five parish area, followed by Sulphur. The five parish region has a population of 296,065.

Workforce development has been a key topic for governmental and business leaders. It is estimated that between 2015 and 2019, 58,776 jobs will be created as a result of the announced projects. Of that number, 40,447 are construction jobs and 18,329 will be permanent.

What sparked the interest in Southwest Louisiana?

“Our region has infrastructure. Interstate 10 passes through, there are seven ports, eight airports, railway, the Calcasieu Parish Ship Channel (which is 34 miles from the Gulf of Mexico), Intercoastal Canal, industrial infrastructure, a university and community college, and a population that wants to work and wants better for their families,” Swift said.

Along with finding ways to fill the job needs, area governmental and business leaders are striving to make sure entrepreneurs are afforded the chance to capitalize off the historic economic growth that will be experienced in the region.

The Southwest Louisiana Entrepreneurial and Economic Development Center and Business Incubator at McNeese State University is home to the Southwest Louisiana Economic Development Alliance, the Imperial Calcasieu Regional Planning and Development Commission, Louisiana Small Business Development Center at McNeese State University, Institute for Industry-Education Collaboration, McNeese State University Innovation Center and Business Incubation Studio, Service Corps of Retired Executives (SCORE) and the Louisiana Procurement Technical Assistance Center (LA PTAC).

Within the walls of the $12 million facility, potential and current entrepreneurs get access to Internet, utilities, telephone equipment, conference rooms, receptionist, professional address, building security, private parking, guest parking, copier/printer, office furniture, start-up space and business mentoring on a variety of subjects.

Project Timeline