The LEEA Dispatch
Our Mission
LEEA brings together leaders in the Louisiana LNG Industry to consider matters relating to industry business, to foster education and understanding of shared challenges, and to promote policies beneficial to the industry before federal, state and local government agencies.
A Message from the LEEA Chair
Maury Hudson, VP Operations and Maintenance, Magnolia LNG

The Louisiana Energy Export Association (LEEA) was formed in January 2017 by companies with interests in exporting Liquefied Natural Gas (LNG) from the State of Louisiana. It has always been our goal to recognize the importance of our host communities and to build strong relationships with Louisiana residents. In 2017, the viability of our projects was threatened by efforts to tax projects before they were even commissioned and able to generate revenue. LEEA and its member companies demonstrated the harmful effects this would have not only for businesses, but also for the average citizens of the State, and those citizens rose to the occasion, supporting and passing Constitutional Amendment 1 on the ballot that year protecting us all from extra taxation.

Later in 2017 and into 2018, LEEA experienced rising support from the business community as businesses from accounting firms to civil engineering contractors contacted us, asking how they could support our efforts. LEEA responded by changing its bylaws to allow three tiers of associate membership for interested parties. In May 2018, LEEA partnered with the SWLA Business Development Alliance to host their monthly Business After Hours event in Lake Charles. Hundreds of visitors attended and were able to talk directly with LNG developers about their projects. The partnership was so successful for this event that LEEA entered into a formal partnership agreement with the Alliance. And, in December 2018, LEEA held its first associate member luncheon to recognize the support we receive in taking our message to Baton Rouge. The support for LEEA from the business community has been outstanding.

2019 promises to bring new challenges. Two issues that LEEA will be closely tracking are
1) efforts to assure the long-term viability of the Calcasieu Ship Channel and
2) recent challenges to the Industrial Tax Exemption Program (ITEP). 

For those who do not know, the Calcasieu Cameron Navigation District (CCND) was created by legislation in 2018 with the primary purpose of securing dredge material placement areas for the Calcasieu Ship Channel. The district is a very proactive, forward-thinking initiative to assure that the U.S. Army Corps of Engineers can continue to satisfy their mandate of dredging the channel. But, the funding mechanism for the CCND is not yet in place, and LEEA will remain active as the final funding solution is identified and implemented. We may again call on the support of the residents and businesses of the State to help us assure the long-term viability of this critical, job-producing asset.

And, many of you may have seen ITEP in the news recently. Some groups are arguing that it hurts residents of Louisiana, and one of their main arguments is that “businesses will come anyway whether they get exemptions or not.” Well, for LNG developments, Louisiana is not only competing against projects in other states but against projects worldwide. In order for purchases in the U.S. LNG to make sense, a buyer has to pay for gas in the U.S., pay pipeline fees to transport it to the LNG plant, pay the LNG Plant to liquefy it and load it onto a ship, pay to ship it across the ocean, and pay to re-gasify it at the destination. All of this must add up to less than alternatives from global gas markets. Without ITEP, the fees go up, making Louisiana less competitive. It does make a difference. The multiplier effect on the economy is huge for manufacturing jobs, so communities benefit dramatically even when granting property tax exemptions.

Please read the rest of our newsletter and let us know if you have any questions. LEEA will remain active this year with LNG Day at the capitol coming up in May, and we plan to have more associate member events in the near future. LEEA appreciates each of you, and we look forward to working together with you in 2019.
At the February 5, 2019, LEEA Executive Board meeting the 2019 officers were nominated and determined.

2019 Chair Maury Hudson, Magnolia LNG

2019 Treasurer Ernie Broussard, Hunt Guillot & Associates

2019 Vice Chair Robert Powers, Commonwealth LNG
SWLA Alliance Administers Association
The Louisiana Energy Export Association (LEEA) signed an agreement to become an affiliate of the Southwest Louisiana Economic Development Alliance/Chamber SWLA. LEEA
represents Louisiana liquefied natural gas (LNG) companies that intend to produce LNG to be
exported to the world.

Maury Hudson, Vice President of Operations and Maintenance with LNG Limited (Magnolia LNG) and LEEA Chairman, said the new relationship provides an environment for LEEA to enhance its ability to be the leader in educating the public and Louisiana policy makers on member companies’ positive impacts to the state’s economy.

“LEEA is the authoritative voice of the state’s LNG industry with members proposing to invest approximately $60 billion into the Louisiana economy over the next 10 years,” he said. “Local, state and national economies are benefiting from LNG investments and LEEA is here to tell that story in Louisiana.”

Over the last two years, LEEA has made substantive contributions to creating a positive operating environment for Louisiana LNG companies through LNG Day during the state legislative session and the group’s successful effort in advocating for Louisiana Amendment 1 in 2017. Amendment 1 led to changes in “construction work in progress” (CWIP) legislation and now exempts building projects from property taxes until they are completed.

George Swift, President and CEO of the Alliance, said his agency will assist LEEA in managing business and communications matters. “We are honored that LEEA is an affiliate member of the Alliance. Our agency will provide resources that will allow the organization to grow and be successful,” he said. “Having LEEA’s presence in Southwest Louisiana makes sense because of the investment LNG companies have made in Calcasieu and Cameron parishes.”

If you have any questions about the partnership between LEEA and the SWLA Economic Development Alliance, contact Eric Cormier at
Past LEEA Events
LEEA After Hours
LEEA December
Associates Meeting
Upcoming LEEA Events: LNG Day at the Capital
LA State

Save the Date
Tuesday, May 14, 2019

About Our LEEA Members
Tellurian at Washington Mardi Gras
Tellurian Inc. hosted a reception during the annual Washington Mardi Gras week in Washington DC attended by over 300 stakeholders. Every year, over 2,000 Louisianans bring Mardi Gras to our country’s Capitol to celebrate Louisiana’s culture while promoting economic development. This year Tellurian’s event, “Let the Good Times Roll”, was held at the Lucky Strike, letting everyone have some fun bowling while taking advantage of networking opportunities.
Tellurian Inc. (Tellurian) (NASDAQ: TELL)
announced recently that the U.S. Federal Energy Regulatory Commission (FERC) issued the final Environmental
Impact Statement for Driftwood LNG, an approximately 27.6 million tonne per annum (mtpa) liquefied natural
gas (LNG) export facility and an associated 96-mile pipeline (Driftwood project), proposed near Lake Charles, Louisiana, on the U.S. Gulf Coast.

President and CEO Meg Gentle said, “Tellurian thanks the FERC for a thorough review and for remaining on schedule. We look forward to receiving the agency’s order granting authorization to site, construct and operate our Driftwood project. Tellurian will then stand ready to make a final investment decision and begin construction in the first half of 2019, with the first LNG expected in 2023.”

Estimated Driftwood project timeline
  • Driftwood final investment decision - 1H 2019
  • Begin construction - 1H 2019
  • Begin operations - 2023
Commonwealth LNG continues to reach new milestones toward the development of its liquefied natural gas (LNG) export venture at the mouth of the Calcasieu River’s west bank in Cameron Parish. The export terminal is projected to produce nine million tons of LNG per annum.

In December 2018, Commonwealth LNG submitted its draft Resource Report 13 for engineering and design material to the Federal Energy Regulatory Commission (FERC).

“With the submission of draft Resource Report 13 to the FERC, Commonwealth LNG continues to actively progress the development of its export facility,” said Paul Varello, President and CEO of Commonwealth Projects. “Commonwealth LNG is focused on managing risk and lowering capital cost resulting in a platform that enables the competitive delivery of LNG to any market, under shorter and more flexible contract terms.”

FERC’s final acceptance of the application is expected in early April of this year and will represent the most important step yet in the company’s progress toward the start of construction of its LNG facility in 2020.

In addition, in October 2018, the company announced execution of key lucrative service contracts with TechnipFMC, CH-IV, Lloyd Engineering and Mammoet USA.

Varello believes, “The strength of our team lies not only in the diverse LNG experience of our executive management, but also with the industry-leading partners we have chosen for this development. Commonwealth LNG will achieve its goal of being the low-cost provider for the next wave of U.S. LNG liquefaction projects.”

TechnipFMC, a world-wide leader in LNG engineering, signed an engineering services contract with the company while a master services agreement was signed with Lloyd Engineering for marine facility and turning basin design, and support of the Water Suitability Assessment (WSA), with the U.S. Coast Guard. TechnipFMC and Lloyd Engineering worked collaboratively with CH-IV, who managed the development of the formal FERC application for the project.

Lastly, Mammoet USA South, Inc., a global leader in heavy lifting and transport technology, signed a consulting service agreement securing its extensive experience and expertise in heavy lifting and transport of large process modules in support of Commonwealth’s Front-End Engineering Design (FEED) and FERC permitting process.

According to Commonwealth LNG Senior Vice President Robert Powers, “We are delighted to work with Mammoet given their extensive experience and track record in transporting large modules. Their engagement gives us great confidence in our modular construction strategy going forward.”

FERC previously issued a Notice of Intent to prepare an Environmental Impact Statement (EIS) in February 2018. Commonwealth LNG expects to file its formal application with FERC in March 2019.

In the meantime, Commonwealth LNG continues to engage with top industry leaders around the world speaking at leading industry events including the World LNG Summit 2018 in Portugal, Japan LNG 2019 in Tokyo and, closer to home, the Houston Energy Club.

Commonwealth LNG anticipates construction to begin by Q4 2020 with commercial operation by Q1 2024. For more information, please visit .