Posted byMessage
Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


Assuming it comes to pass, all I see is good written all over this, both for the short & long-term local economies, as well as for the US energy security given our vast shale gas resources.

#winning


Rex,
Tell me why I'm wrong.








Back to top
Share:
LSUgusto
Member since May 2005
16203 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

Rex,
Tell me why I'm wrong.
Speaking for Rex, "Gov. Bobby Jindal"... therefore, it's wrong.

Anyway, sounds like a nice facility to ship La. natural gas overseas. Woo hoo.






Back to top
CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46226 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

Anyway, sounds like a nice facility to ship La. natural gas overseas. Woo hoo.


The way I read it, they intend to convert NG to liguids which would be used domestically, not for the shipment of LNG overseas, although Cheniere Energy also around Lake Charles got the first US permit recently to do what you suggest.






Back to top
Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

sounds like a nice facility to ship La. natural gas overseas


To be clear, this is a GTL facility (gas-to-liquids), not and LNG (liquified natural gas) liquifaction facility. It will convert natural gas into fuels like diesel, gasoline, etc. by chemically combining short-chain hydrocarbon molecules (chemical change-GTL) vs. cooling short-chain hydrocarbon molecules until they turn into a liquid gas (physical change-LNG)

I would imagine most (if not all) of that would be consumable in the US. However, if we DID ship some diesel overseas, I guess we'd be shipping La. natural gas overseas...if you want to look at it that way.

Haynesville Shale & GOM Shelf Gas In --> Clean (no sulfur whatsoever) Diesel Fuel Out



This post was edited on 9/13 at 8:17 pm


Back to top
Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

Cheniere Energy also around Lake Charles got the first US permit recently to do what you suggest.


I'm almost positive that Cheniere Energy's permit is to turn liquid gas from overseas back into gaseous gas for use in the US market....so the opposite of what he said.

I could be wrong. I know there is a RE-gassification facility in Calcasieu. Haven't heard anything about an LNG liquifaction facility being built in Louisiana.






Back to top
wickowick
LSU Fan
Head of Island
Member since Dec 2006
20005 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

I could be wrong. I know there is a RE-gassification facility in Calcasieu. Haven't heard anything about an LNG liquifaction facility being built in Louisiana.


Looks like it is a possibility...

LINK

quote:

The governor of Louisiana, Bobby Jindal today announced that the state could be the site of what he calls the "one of the first natural gas liquefaction facilities in North America."

The facility will be built by Cheniere Energy which already has a terminal at Sabine Pass in Cameron Parish in the state.

Cheniere says it will spend $6 billion to expand its existing facility, which will be one of the largest capital investments in Louisiana history.







Back to top
Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

wickowick




That would certainly be interesting. I've always thought Calcasieu Parish, given its Port and strategic location relative to the GOM shelf, was poised to explode industrially if we could incentivize this kind of business to invest there instead of in Port Arthur or the Galveston Bay area.






Back to top
CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46226 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

I'm almost positive that Cheniere Energy's permit is to turn liquid gas from overseas back into gaseous gas for use in the US market....


That was the original model, but with the glut of cheap natural gas in the US, (shale, ultra deep wells in gulf shallow and deep water), they recently got permitted to send the stuff the other way.






Back to top
Tiger Authority
LSU Fan
Member since Jul 2007
29475 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


5,000 jobs? Did I read that right?





Back to top
Luke4LSU
LSU Fan
Member since Oct 2007
11986 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

5,000 jobs? Did I read that right?


Yes, but those are "temporary" (read: during construction, which will last from 2013-2018).

Then it's only about 1,000 jobs.

I'm more excited about the precedent this sets. With the situation the US is in (has gas, needs diesel/gasoline), GTL makes sense. Glad someone's jumping in first!






Back to top
LSUgusto
Member since May 2005
16203 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

The way I read it, they intend to convert NG to liguids which would be used domestically, not for the shipment of LNG overseas
Cool.
quote:

although Cheniere Energy also around Lake Charles got the first US permit recently to do what you suggest.
So, the big expansion there is to actually reverse what they started out as? Interesting.






Back to top
TheBob
New Orleans Saints Fan
Metairie
Member since Jun 2005
12259 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


Great news.





Back to top
Tiger Authority
LSU Fan
Member since Jul 2007
29475 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

Yes, but those are "temporary" (read: during construction, which will last from 2013-2018).

Then it's only about 1,000 jobs.


Yeah I knew construction jobs were included but still very impressive.






Back to top
CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46226 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

Yes, but those are "temporary" (read: during construction, which will last from 2013-2018). Then it's only about 1,000 jobs.


They also stated: LED estimates that the project also would result in approximately 4,000 indirect jobs, which means the total impact of the project would be nearly 5,000 new jobs in Southwest Louisiana.

So besides the temporary jobs associated with construction and the 850 opermanent workers 4000 new jobs in other businesses are creatd for the almost 5K stated.






Back to top
Tiger Authority
LSU Fan
Member since Jul 2007
29475 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


Yeah I imagine the economic jobs multiplier is pretty significant with an operation like this.





Back to top
CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46226 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

So, the big expansion there is to actually reverse what they started out as? Interesting.


It really is a strange operation. They have to find the money to build the new capacity. They (CQP) has a great dividend it was over 10% when I got in and the value has risen, and they don't do jack as an importer, they just have contracts and have sold space to a couple of majors that are seemingly not used to import anything. It is either going to collapse (as the dividend can't continue) or do well, as the new plan makes a lot of sense economically and strategically for the US. NG is cheap here compared to Europe and Asia.

If these two projects work Louisiana could do well for decades on NG resources.






Back to top
4cubbies
Washington Fan
we are BR
Member since Sep 2008
37982 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

New GTL Plant


new gym, tan, laundry plant?






Back to top
CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46226 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

Yeah I imagine the economic jobs multiplier is pretty significant with an operation like this.


I think Economic development people inflate this stuff,

Look at Obama's stimulus hundreds of billions invested and each new job costs many millions, and there seems to be no multiplier effect, just a massive bureaucracy spending obscene amounts of money to create expensive jobs?






Back to top
ottothewise
LSU Fan
Member since Sep 2008
32094 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


boon

not boom

it would be a "boon" for the Lake Chuck economy.








Back to top
LSUgusto
Member since May 2005
16203 posts

re: Sasol to Build New GTL Plant in Calcasieu Parish - Boom for LA Economy


quote:

If these two projects work Louisiana could do well for decades on NG resources.
NG is the direction we should be going for a clean, abundant fuel.






Back to top



Back to top