Magnolia LNG Earns Louisiana Tax Incentive
Australia’s LNG Limited, which is developing the 8.8mn mt/yr Magnolia LNG project in Lake Charles, Louisiana, said May 23 it had received its industrial tax exemption program incentive from the state, improving the competitiveness of the US$4.35bn project.
The incentive was approved by the Louisiana Board of Commerce and Industry, local governments and Louisiana's governor, John Edwards, and is designed to offer a tax incentive for manufacturers who make a commitment to jobs and payroll in Louisiana. Magnolia was eligible for the property tax incentive for a portion of the building and materials, machinery and equipment, and labour costs of the project, which will generate 1,500 construction jobs and 200 permanent direct positions in Louisiana.
“Louisiana leads the US as an exporter of liquefied natural gas, and the Magnolia LNG project will extend our state’s production and technology leadership in this vitally important energy market,” Edwards said. “By the end of 2019, Louisiana producers will generate enough LNG to fuel 24mn homes on a daily basis. Our next wave of LNG projects, which will include Magnolia, can raise that total to the equivalent of 63mn homes.”
In October 2018, LNGL said it expected to take a final investment decision on Magnolia “in the first part of 2019.” But during a May 22 conference call with investors, LNGL CEO Greg Vesey suggested that the current global LNG glut, the simmering trade dispute between the US and China and low spot prices for LNG have combined to make meeting that time frame unlikely.