LNG job projection numbers differ

Driftwood LNG will produce 6,400 temporary jobs and 300-350 long-term jobs as it builds and operates its $15.9 billion manufacturing facility, according to its application for Louisiana’s Industrial Tax Exemption Program.

However, local officials are citing as many as 20,000 construction jobs and 500 permanent jobs, based on an economic impact study paid for by Telluran LNG, Driftwood’s parent company. During an Alliance for Positive Growth meeting in December, Calcasieu Parish Administrator Bryan Beam said the project will produce 200-300 permanent jobs once completed, with contract positions bringing that estimate closer to 500 jobs. He added that it will create more than 20,000 construction jobs over five years.

Industries that want to take part in the ITEP must complete an extensive application, sign a cooperative endeavor agreement with the state, pay a $15,000 application fee to the Louisiana Department of Economic Development and get local approval. The documents are public record, with companies disclosing the legally binding details of their business plans, including their timeline for construction and operation, as well as employment and payroll projections.

Tam Bourgeois, executive counsel for LED, said companies are legally obligated to fulfill the figures outlined in the cooperative endeavor agreement to continue receiving the program’s guaranteed tax exemption benefits. Companies that don’t meet those requirements could have their ITEP benefits limited or cancelled, according to the agreement’s “obligation section.”

Economic study

Joi Lecznar, Tellurian’s senior vice president of public affairs and communications, said economist Loren Scott was hired to complete the study in order to “better understand our overall impact to the community.”

Hiring an outside expert is a “very common and customary practice,” she said.

While Scott’s numbers are more widely circulated than the ITEP application and agreement figures, “the Scott study was not used for the ITEP application,” Lecznar said.

Scott’s study uses a “multiplier effect” economic principle to project the “secondary” or “indirect” impacts new jobs could potentially create.

“Conservative figure”

When Driftwood’s application was brought before local taxing entities in November, the Calcasieu Parish Taxing Authority’s recommendation stated the project would bring 200 permanent jobs, not the 300-350 jobs mentioned in the ITEP application.

Jason French, Tellurian vice president of government and public affairs, clarified the difference in a November interview with the American Press. Because all 350 employees may not be Louisiana residents, he said 200 would be its “accurate but conservative figure.”

“We want to show entities an accurate, but conservative return on investment,” French said.

He added that the number of permanent jobs could be closer to 400 after factoring in non-Louisiana residents and contract workers.

Scott predicts the Driftwood project could bring in 7,901 jobs to the area in the first year of construction, more than the amount cited in the company’s ITEP application. Driftwood is not legally obligated to fulfill any of Scott’s projections.

””Industrial Tax Exemptions

SportsPlus

Local News

Higgins, Carter introduce legislation to combat contaminated foreign seafood

Crime

Former Elton mayor pleads not guilty to battery charge

Crime

7/1: Calcasieu Parish Sheriff announces arrest list

McNeese Sports

Southland welcomes two new members

Local News

Supreme Court rules ex-presidents have broad immunity, dimming chance of a pre-election Trump trial

Business

Names in the News: People shaping the future of Lake Area business

life

On Campus: SW La. students recognized for achievements

Local News

How will Louisiana’s new Ten Commandments classroom requirement be funded and enforced?

Local News

Biden meets with his family amid pressures to step down after debate

Local News

Donation celebrated by Second Harvest, but volunteers are still needed

Local News

Grand Avenue Gym: DeQuincy landmark fading fast, group fighting to save it says

Local News

Beryl becomes major hurricane forecast to bring life-threatening conditions to Caribbean

life

Fourth of July festivities in Jennings will kick off with Stars and Stripes Festival

Local News

Ceremony held at Fort Johnson for deploying troops

Jim Beam

Jim Beam column:Don’t expect new candidates

life

SW La. nightlife calendar: There’s always something to do

life

USAF Band of the West making Lake Charles stop

high-school Sports

Upgrades planned for Jerry Simmons football stadium in Jennings

Crime

Lafayette teen charged in Ernest Street fatal shooting

Crime

6/28: Calcasieu Parish Sheriff announces arrest list

Local News

Longhorns make quite a statement to the SEC

Local News

Bicyclist fatally struck after allegedly running stop sign

Local News

PHOTO GALLERY: Stitch Guillory sworn in as sheriff

Local News

Sheriff Guillory: ‘I am living MLK’s dream’