LA: Gov. Jindal and Cheniere Energy CEO Charif Souki Announce More Than $6 Billion Natural Gas Facility in Louisiana | Trade and Industry Development

LA: Gov. Jindal and Cheniere Energy CEO Charif Souki Announce More Than $6 Billion Natural Gas Facility in Louisiana

Jul 19, 2011
Project to create 148 new direct jobs, link to Haynesville Shale play
Map of Louisiana highlighting Cameron Parish

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Today, Gov. Bobby Jindal joined Cheniere Energy Chairman and CEO Charif Souki to announce that one of the first natural gas liquefaction facilities in North America will be constructed at Cheniere's Sabine Pass terminal in Cameron Parish. Cheniere's anticipated investment of $6.5 billion will expand its Sabine Pass facilities with one of the largest capital investments in Louisiana history.

The new project anticipates the creation of 148 new jobs and the retention of 77 existing jobs, with a total compensation and benefits package that will exceed an annual average of $100,000. The new jobs would support another 589 indirect jobs in the area, and 3,000 construction jobs are projected at the peak of construction activity. The new Cheniere facility is planned at the Louisiana-Texas border in Cameron Parish to handle the shipment of liquefied natural gas, or LNG, from the company's international LNG terminal.

Gov. Jindal said, "Cheniere Energy's construction of one of the country's first liquefaction facilities at the Sabine Pass terminal in Cameron Parish is a huge win for our state. This multibillion-dollar investment will be one of the largest capital investments in the history of Louisiana and will build on our incredible record of job creation projects all across the state. Cheniere's facility will grow our economy, increase natural gas production and become a major exchange in continuing to meet the demand for energy around the world."

Cheniere is expected to utilize the Quality Jobs and Louisiana FastStartTM programs, as well as the Industrial Tax Exemption Program, to support the expansion project.

"The construction of Cheniere's liquefaction project in Cameron Parish will provide key support to Louisiana's economy and natural gas industry, which has been transformed by the development of the Haynesville Shale," said Souki, the Cheniere Energy chairman and CEO. "In only two years, Louisiana's natural gas production has doubled as the Haynesville has grown into one of the most prolific shale plays in the world. Our liquefaction project will provide thousands of jobs in Southwest Louisiana while connecting the state's natural gas industry to global markets, making Louisiana the world's first dual importer and supplier of LNG. We greatly appreciate the support that Cheniere has received from the State of Louisiana and the people of Cameron Parish, who have demonstrated a strong commitment to our Sabine Pass LNG terminal."

Cheniere Energy anticipates construction will begin in early 2012, with hiring of the new permanent jobs beginning in 2014. The company will commence operations at the liquefaction facility in 2015, and the second phase of the project is expected to be completed by the end of 2018. Adding liquefaction capabilities will transform the Sabine Pass terminal into a bi-directional facility capable of exporting LNG in addition to receiving LNG for regasification.

Louisiana Economic Development Secretary Stephen Moret said, "This project is a terrific example of the tremendous secondary economic benefits associated with the Haynesville Shale and other unconventional natural gas plays in our country. We expect to see even more massive capital investment projects associated with the Haynesville Shale announced in Louisiana over the next few years. The economic benefits of historically low, stable natural gas prices in Louisiana have only begun to be realized."


About Cheniere Energy
Cheniere Energy Inc. (NYSE Amex Equities: LNG) is a Houston-based energy company primarily engaged in LNG-related businesses. Cheniere owns and operates the Sabine Pass LNG receiving terminal in Louisiana through a 90.5 percent ownership interest in, and management agreements with, Cheniere Energy Partners L.P. (NYSE Amex Equities: CQP), which is a publicly traded partnership created in 2007. Cheniere also owns and operates the Creole Trail Pipeline, which interconnects the Sabine Pass LNG receiving terminal with downstream markets.
 

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