Latest news with #VentureGlobalLNG
Yahoo
11-05-2025
- Business
- Yahoo
Louisiana might pay out overlapping business incentives for a decade or more
U.S. Energy Secretary Chris Wright, second from left, Gov. Jeff Landry, center, and U.S. Interior Secretary Doug Burgum walk with executives of Venture Global LNG during a March 6, 2025, tour of the company's export facility in Plaquemines Parish. Venture Global receives payroll rebate incentives through the state's Quality Jobs Program. (Governor's Office photo) Economic development officials in Louisiana want to place less emphasis on the number of new jobs major projects bring to the state and more on what they pay employees. Their strategy calls for a new business incentive program to replace a popular existing one, but it could be a decade or longer before the state stops doling out both perks – potentially costing the public hundreds of millions of dollars annually. Last month, the House Committee on Commerce approved House Bill 507, by Rep. Julie Emerson, R-Carencro, which would create the Louisiana High Impact Job Program. It hopes to entice companies that offer jobs with above-average pay in the parish where they intend to invest. In return, the state will award the business a grant that will cover a portion of that salary – the more the company pays new hires, the higher the grant. Companies providing jobs that pay 125% of the parish average will receive a grant to cover 18% of each salary. The award goes up to 22% for salaries at 150% of the local level. For what the bill deems 'distressed areas,' employers would have to clear lower hurdles. Their businesses would receive an 8% grant for salaries at 110% the average. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX There are no limits in the bill on the number of new jobs a company can add to claim the benefit, though the bill gives state officials the right to update the program's rules. There is a ceiling of $200,000 per year per job and $125 million in annual grant awards for the entire program. Employers must offer health insurance coverage to qualify for a High Impact Jobs grant, and the new hires have to be full-time direct employees or work for a subsidiary named in the grant contract with the state. The bill allows remote jobs to qualify for the incentive, though they must be Louisiana 'residents' as defined under state tax law. Money for the grants will come from state corporate income and franchise taxes, according to the bill, though lawmakers eliminated the franchise tax last year, effective Jan. 1, 2026. Legislative calculations attached to Emerson's proposal peg the High Impact Job Program's average cost to the state at $69.4 million annually over the next five years. Louisiana Economic Development Secretary Susan Bourgeois, who joined Emerson to present her bill to the committee, acknowledged the High Impact Job Program would overlap the incentive it's intended to replace – the Quality Jobs program – for years to come. The Quality Jobs incentive gives companies a 6% rebate on their payroll expenses for 10 years. It also comes with either a state sales tax break on money the business spends on its job-creating project or a 1.5% rebate for facility expenses. These project investment elements are not part of the High Impact incentive, which would be offered for a three-year period with an opportunity to renew for two more years. That would make it half the length of the 10-year Quality Jobs incentive. 'Quality Jobs was really more about the number of jobs, where this [High Impact] program is far more about the wages for the jobs,' Bourgeois said in an interview after the bill was approved. The secretary told lawmakers the High Impact Job Program will also be open to small local businesses, as long as they create jobs with salaries above the parish average. Emerson's bill, which gives the program a 10-year lifespan, goes next to the House Appropriations Committee for its financial impact on the state to be considered. As part of their tax and budget special session last fall, legislators agreed to let multiple business incentives lapse once their statutory life expires. That deadline is the end of next month for most of the programs eliminated. This was paired with a package of business tax reductions, including a lower, flat corporate income tax rate and the end of a state franchise tax that its detractors called an unwarranted fee to do business in Louisiana. All told, lawmakers agreed to end eight business incentive programs last year, effective June 30, which will remove $180 million to $225 million in state obligations from the state budget, according to Bourgeois. Jan Moller with Invest in Louisiana, a progressive fiscal policy watchdog group, told the Illuminator he expected the business-friendly legislature would eventually restore some of the incentives it targeted last year. 'I'm not surprised that it happened,' Moller said. 'I'm surprised that it's happening four months after the ink dried on that tax bill.' Although Quality Jobs was among the incentive programs lawmakers eliminated, the state will continue to accept applications until its June 30 sunset date. Its actual payroll rebates aren't issued until a qualifying company adds new jobs, and those hires can be made years after the incentive is approved. Only then does the 10-year clock on the incentive period start. For projects such as the Meta data center in northeast Louisiana, which isn't expected to start hiring for another five years, the state could still be making good on its Quality Jobs promises in 2040, Bourgeois confirmed. Quality Jobs recipients will be given the option to switch over to the High Impact program, but they won't be able to double up on incentives, the secretary said. 'If they have an existing [Quality Jobs] contract, then they can live out that contract,' Bourgeois said. 'They can also choose to look at it and see if they would rather do it differently.' Paperwork the Illuminator obtained through a public records request with Louisiana Economic Development shows 16 projects have applied for Quality Jobs rebates in 2025 as of the end of April. All told, they would create more than 1,500 direct jobs with a combined payroll of nearly $167 million once all new hires are made. Ileana Ledet, LED's chief economic competitiveness officer, told lawmakers the High Impact Job Program is modeled after similar incentive programs in Georgia, North Carolina and Texas that are considered successful. 'We're looking at best practices and making our recommendations based on what other states are doing well in incentivizing those higher-wage jobs,' Ledet said. Moller questions whether the High Impact Jobs Program will live up to its name. By linking the incentive to what's already a below-average parish salary, companies won't be required to move the needle significantly on living wages in his opinion, he said. 'We are underwriting payroll of companies that we like, and they don't even have to be particularly great jobs,' Moller said. 'They just have to pay a little bit above average.' The most recent figures from the U.S. Bureau of Labor Statistics show average weekly wages in Louisiana during the first quarter of 2024 were $1,195, ranking 39th in the nation. The rate was lower than the state average in 47 out of 64 parishes, with Catahoula at the bottom with an average weekly wage of $710. The legislation gives Louisiana Economic Development the authority to carve out areas within a parish and declare them 'distressed.' This is what's planned for the Hyundai steel mill in Donaldsonville, Bourgeois said, where salaries significantly trail the Ascension Parish average. The typical weekly pay in Donaldsonville is $836, while the parish rate is $1,449, according to federal data. Emma Wagner, LED's communications director, said rules are still being hammered out to define what makes an area distressed. She expects they will include criteria such as the unemployment rate and whether the area qualifies for federal tax breaks targeting low-income communities. Moller acknowledged his outlook for the High Impact Jobs Program is shaded by the efficacy of the Quality Jobs incentive, which the Legislative Auditor determined in a 2020 report was a net loss for the state. That review also determined only a third of Quality Jobs investment spending went to Louisiana companies, and that the majority of household income those jobs created would have likely happened without the rebate program. 'These kinds of subsidies end up becoming just lagniappe, but not the thing that brings a company into Louisiana,' Moller said. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Forbes
02-04-2025
- Business
- Forbes
U.S. Natural Gas In 2025: Record Supply And Demand
Mike Sabel, executive co-chairman and founder of Venture Global LNG, from left, Chris Wright, US ... More energy secretary, Jeff Landry, governor of Louisiana, Doug Burgum, US secretary of the interior, and Bob Pender, executive co-chairman and founder of Venture Global LNG, after touring the Marine Offloading Facility (MOF) at the Venture Global Plaquemines liquefied natural gas (LNG) export facility in Port Sulphur, Louisiana, US, on Thursday, March 6, 2025. Venture Global plans to expand its Plaquemines LNG facility south of New Orleans, bringing its total investment in current and planned US projects to more than $75 billion, according to an emailed statement. Photographer: Kathleen Flynn/Bloomberg The U.S. Energy Information Administration (EIA) recently reported that U.S. natural gas consumption set new winter and summer consumption records in 2024, highlighting the growing importance of natural gas in the global energy mix. This surge in consumption comes amid record production levels, even as drilling activity remains subdued. The implications of these trends are significant, influencing everything from energy prices to power generation choices. According to the latest EIA data, natural gas production remains at record levels despite relatively low levels of new drilling activity. This resilience has contributed to stable supply levels, ensuring that the market remains well-supplied even as demand reaches new highs. One major factor in this record consumption is the increasing role of natural gas in power generation (see How AI Data Centers Are Reshaping America's Electric Grid), industrial applications, and exports. The expansion of LNG facilities, such as the newly commissioned Plaquemines LNG project, has further strengthened demand, while colder-than-expected weather patterns have also driven up usage. U.S. Natural Gas Consumption by Sector (2015-2024). However, despite these bullish factors, high natural gas prices have started to displace gas-fired power generation in favor of coal, reversing some progress in the transition to cleaner energy sources. While natural gas demand remains strong, Enverus Intelligence Research (EIR) has highlighted a mixed outlook for prices. EIR recently upgraded its NYMEX Henry Hub gas price forecast for the rest of 2025, citing the rapid expansion of LNG exports and favorable weather conditions. However, the firm expects prices to average around $3.90/MMBtu, approximately 30 cents below the current forward strip, suggesting that record production will continue to keep prices in check. 'High natural gas prices are a headwind to gas-fired generation, to the benefit of coal,' said Al Salazar, director at EIR. This shift raises concerns about the energy transition and the long-term viability of natural gas as a bridge fuel in the move toward decarbonization. Despite record-breaking consumption and production, natural gas markets are not without challenges. The geopolitical landscape, particularly U.S. trade policies, remains a significant factor affecting investment and market stability. Tariffs on imported materials could raise costs for pipeline construction and LNG export terminals, potentially slowing future supply growth. At the same time, global energy markets remain volatile due to OPEC's decision to unwind production cuts and uncertainty surrounding U.S. economic policies. While these factors primarily impact oil prices, they also create ripple effects that influence natural gas markets, investor sentiment, and long-term infrastructure planning. As 2025 unfolds, natural gas remains a key player in the evolving energy landscape. Record consumption and production levels indicate strong demand, yet price pressures and competition from coal highlight ongoing market challenges. With strategic investments and accurate forecasting, the industry must navigate these complexities while ensuring reliable and sustainable energy supply for the future.
Reuters
19-03-2025
- Business
- Reuters
Trump DOE approves Venture Global LNG exports from Louisiana project
WASHINGTON, March 19 (Reuters) - U.S. President Donald Trump's administration granted Venture Global LNG (VG.N), opens new tab approval on Wednesday to export natural gas from a proposed Louisiana facility which had faced delays under former President Joe Biden. The approval comes as Trump seeks to vastly expand U.S. oil and gas production and exports as part of what he calls his "energy dominance" agenda. The U.S. is already the world's top producer of oil and gas, and the No. 1 LNG exporter. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. The Energy Department said in a press release on Wednesday that it has authorized widespread exports from Venture Global's CP2 project in Cameron Parish. Venture Global's share price, which has fallen 60% since its initial public offering in January, was trading higher on Wednesday morning, up 4% from Tuesday's close. The export permit approval is the fifth LNG-related approval from the Department of Energy since President Donald Trump took office and lifted a freeze on new export permits imposed by the previous administration to study their environmental impacts. "The benefits of expanding U.S. LNG exports have never been more clear, and I am proud to be taking action to support the American people and our allies abroad with more affordable, reliable, secure American energy," said Energy Secretary Chris Wright. "We are grateful for the Trump Administration's return to regular order and regulatory certainty that will allow us to further expand U.S. LNG exports," said Venture Global in a press release on Wednesday. The administration of former President Joe Biden had been concerned that the rapid expansion of the U.S. LNG business would increase greenhouse gas emissions, particularly through methane escaping from leaky pipelines and other infrastructure. Venture Global has already secured long-term supply agreements for CP2 with companies including Exxon Mobil (XOM.N), opens new tab, Chevron (CVX.N), opens new tab, JERA, New Fortress Energy (NFE.O), opens new tab, INPEX (1605.T), opens new tab, China Gas, SEFE and EnBW, the company said. Despite securing the permit, the 20 million metric tons per annum CP2 project also remains subject to final approval from other federal regulators, and Venture Global is still in the process of making a final investment decision. In December, the Federal Energy Regulatory Commission (FERC) pulled Venture Global LNG's authorization to construct the CP2 export facility, requiring an additional environmental review of air quality impact. CP2 has been at the center of a fight with environmentalists seeking to limit future LNG projects on the U.S. Gulf Coast.
Axios
06-03-2025
- Business
- Axios
LNG player to expand Louisiana export facility
Venture Global LNG plans to expand its existing Plaquemines export facility in Louisiana with a roughly $18 billion investment, the company said. Why it matters: This would raise the capacity of Plaquemines, which began initial shipments in December, by over 18 million tons annually to reach over 45 million, Venture said. It will be North America's biggest LNG facility, "supplying LNG to our allies while making a substantial impact on the U.S. balance of trade," CEO Mike Sabel said in a statement. The big picture: Thursday's announcement is a clear sign of LNG's political priority in Trump 2.0. Both DOE boss Chris Wright and Interior Secretary Doug Burgum will give remarks later Thursday at the plant. Friction point: Climate activists oppose LNG expansion, while supporters say it helps displace coal abroad. Biden officials produced a report late last year warning that "unfettered" exports would raise domestic prices and worsen emissions. But the conclusions are highly contested — and disregarded by Trump's team. "We believe this will be the best regulatory environment in decades," Sabel said. What we're watching: The market reaction and pending DOE permit decisions on Venture's separate CP2 project. Venture, which also reports earnings Thursday, has seen its share price slide since going public in January.
