The Greater Lafourche Port Commission (GLPC) and tenant Energy World USA (EWUSA) announces that wholly owned Fourchon LNG LLC has filed its formal letter to request initiation of the pre-filing review process with the US Federal Energy Regulatory Commission (FERC). Upon completion of the pre-filing process, Fourchon LNG LLC intends to file an application with FERC for authorization to construct the proposed 5 million tons per annum mid-scale liquefied natural gas (LNG) production and export facility at Port Fourchon.
Once constructed, Phase 1 of the Fourchon LNG project will produce 2 million tons of LNG per year for export, with a program to increase capacity up to 5 million tons in Phase 2. Fourchon LNG also plans to reserve up to half a million tons of LNG per year for domestic use, with the intent of providing LNG to fuel the next generation of offshore supply vessels (OSVs) powered by LNG and operating in the Gulf of Mexico.
“We welcome this critical milestone for the Fourchon LNG project by our tenant Energy World, and we are excited to have the opportunity to add their proposed facility and its services to Fourchon’s diverse and extensive list of offerings,” said GLPC’s Executive Director Chett Chiasson. “We are looking forward to working with Energy World and our community to move forward through the regulatory process and keep Port Fourchon at the forefront of the oil and gas service industry.”
The Fourchon LNG facility is to be constructed to the west of Belle Pass on a site of up to 150 acres located on port-owned property outside of the port’s existing developments.
The project developer, Fourchon LNG LLC, is a newly established project company owned by Energy World (USA) Inc. and is part of the Energy World International Ltd. (EWI) group of companies. The EWI group is engaged in the business of developing, constructing, and operating in property investment, infrastructure, power generation and energy-related projects.
“The Energy World Group of companies has over 20 years’ experience in the safe production, storage, transportation and delivery of LNG to its customers in Australia; and the Group is completing two world class LNG facilities in Indonesia, which will be the reference plant for Fourchon LNG, and the very first import terminal in the Philippines. We appreciate the opportunity to bring this type of new development to Port Fourchon,” said Graham Elliott, Project Director for Energy World.
“Energy World is pleased to commence our first US-based project by kicking off the formal regulatory process with FERC following over two decades of sustainable, safe, and timely delivery of similar projects in sensitive environments across the globe. We look forward to incorporating the LNG produced at Port Fourchon into our global supply chain to fuel our own gas-fired power plants right across the Asia-Pacific region as well as providing a clean, green source of fuel for the next generation of US marine vessels. Additionally, we hope to export to Jamaica and the wider Caribbean, where Energy World is separately proposing to develop an LNG hub terminal and gas-fired power plants consistent with our goal of delivering clean and affordable electricity to developing countries on a global platform,” added Stewart Elliott, Managing Director of Energy World International.
The proposed facility will represent an investment of upwards of $888 million for Phase 1, making it the largest single initial investment in the history of both Port Fourchon and Lafourche Parish.
“Our community has been dealing with an economic downturn for a few years now, so we are excited for the opportunities that this project will provide by bringing hundreds of jobs during the construction phase, and dozens of good-paying permanent jobs once the facility is operational, which will help our young families and workers,” said GLPC Board President Perry Gisclair.
GLPC has been working with Energy World to produce a Preliminary Waterway Suitability Assessment with the US Coast Guard, which will help to ensure that current and future port activities are not adversely affected by the operation of the potential facility. GLPC and Energy World are currently working with the Coast Guard to advance to the next stage of the Waterway Suitability Assessment process for the project. This assessment will also serve to support Energy World’s application to the Federal Energy Regulatory Commission (FERC) for project approval.
“We take our role as advocate for our existing tenants and the offshore service industry seriously, and we are working very closely with both the US Coast Guard and Energy World to ensure that vessel traffic in and out of the port will continue to grow through this development and our other expansion plans stretching far into the future,” Gisclair added.
With the assistance of the Greater Lafourche Port Commission, the South Louisiana Economic Council (SLEC) is working with the Louisiana Department of Economic Development (LED) to identify potential business and tax incentives to help ensure that the project is constructed in Louisiana’s Bayou Region.