Magnolia LNG receives tax incentive
Published by David Rowlands,
According to the statement, the program is designed to offer a tax incentive for manufacturers who make a commitment to jobs and payroll in Louisiana. Magnolia was reportedly eligible for the property tax incentive for a portion of the building and materials, machinery and equipment, and labour costs of the US$4.354 billion Magnolia project.
LNG Limited claims that the project is set to generate 1500 construction jobs and 200 permanent direct positions for Louisiana, as well as substantial cascading benefits into the Southwest Louisiana region and the State of Louisiana overall. The savings from this exemption boost Magnolia’s ability to compete in the global LNG market and provide an important economic boost to help the project along its path to a final investment approval.
Greg Vesey, Managing Director and Chief Executive Officer of LNG Limited, said: “On behalf of LNG Limited’s Board of Directors and my colleagues, I wish to thank Governor Edwards, Louisiana Economic Development (LED) Secretary Don Pierson, the Southwest Louisiana legislative delegation, Calcasieu Sheriff Tony Mancuso, the Calcasieu Parish Police Jury, Calcasieu Parish School Board, Lake Charles Mayor Nic Hunter, and the Port of Lake Charles for their steadfast support of Magnolia LNG and our ITEP application process.
“We are aware of our corporate responsibility to the State of Louisiana and particularly the Lake Charles area, and we will continue to support the community through job creation and community involvement as Magnolia moves toward a final investment decision.”
Gov. Edwards said: “Louisiana leads the US as an exporter of LNG, and the Magnolia LNG project will extend our state’s production and technology leadership in this vitally important energy market.
“By the end of 2019, Louisiana producers will generate enough LNG to fuel 24 million homes on a daily basis. Our next wave of LNG projects, which will include Magnolia, can raise that total to the equivalent of 63 million homes. With a projected 38 billion ft3 of natural gas to be produced daily along the Gulf Coast, Louisiana is well-positioned to continue our LNG leadership.”
LED Secretary Don Pierson added: “Projects such as Magnolia LNG generate thousands of important construction jobs on the front end, hundreds of high-paying permanent jobs once operations begin, and thousands more permanent new indirect jobs in the Louisiana economy.
“At the same time that we are strengthening our midstream logistics and industrial economy in Louisiana, we’re seeing major investors like LNG Limited provide key clean energy solutions for customers around the globe. Louisiana is proud to enable this key energy connection for our future.”
Read the article online at: https://www.lngindustry.com/liquefaction/24052019/magnolia-lng-receives-tax-incentive/
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