Port of Lake Charles

Lake Charles Harbor & Terminal District
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Two new industrial facilities to be located on Port of Lake Charles property

Posted on: January 24th, 2013

Port of Lake Charles Commissioners on Thursday approved an option for a long-term lease agreement on 200 acres with G2X Energy, a Houston-based energy company that plans to build a $1.3 billion natural gas-to-gasoline facility on port property located across from Calcasieu Point Landing on the Industrial Canal.

The G2X Energy project is expected to create 243 new direct jobs, resulting in an estimated 748 new indirect jobs. According to the company, the direct jobs will pay an average salary of $66,500 plus benefits.

“The Port of Lake Charles property was chosen for the new energy project due to its refined logistics, transportation infrastructure and cooperative assistance, as well as the state’s business climate,” said Port Director Bill Rase. “The product can be distributed by pipeline to U.S. markets and by ship to foreign markets.”

Helping to secure the project, Louisiana Economic Development offered a $5-million performance-based grant for infrastructure improvements at the Port, including an access road, utilities and a dock facility.

Should groundbreaking begin in mid-2014, G2X expects construction to span three years, leading to an estimated completion date in mid-2017.

Along with visionary leaders and the state’s business climate, Port of Lake Charles Executive Director Bill Rase credited the Calcasieu River Ship Channel itself for the latest string of industrial announcements.

“The channel is maintained by the U.S. Army Corp of Engineers with the port serving as local sponsor for the state. The channel is greatly responsible for our region’s thriving energy corridor, and the port has played a crucial role in this community’s economic development since opening its first wharf and transit shed in 1926,” said Rase. “In 2012 alone, major announcements from Ameristar, Lake Charles Clean Energy, Sasol and now G2X have been due in part to the Calcasieu River Ship Channel.”

The impact of Ameristar, Lake Charles Clean Energy, Sasol and G2X will benefit the region for a very long time. Initial reports estimate a total of 15,000 to 20,000 construction jobs for the combined projects, in addition to an estimated 14,000 permanent direct and indirect jobs. The 2012 announced projects along the channel represent a capital investment estimated at between $20.3 and $25.3 billion dollars.

President Harry Hank of the board of commissioners said “The ship channel is important not just for Southwest Louisiana, but for the entire country. This waterway is the carrier of 7.5 percent of the nation’s daily oil consumption and handles 58 million tons of cargo annually.”

In addition, dozens more Port of Lake Charles tenants and customers benefit from the Calcasieu River Ship Channel. Those include Alcoa, Ameristar, Arrow Terminals, BG Americas and Global LNG, Cal Western Packaging, Citgo, Crowley Marine, Dynamic Industries, Farmers Rice Mill, Federal Marine Terminals, Firestone, Foss International, Francis Drilling Fluids, Gearbulk, Geo Specialty Chemicals, Halliburton, IFG Port Holdings, James J. Flanagan, Lake Charles Clean Energy, Lake Charles Stevedores, Leevac Industries, Louis-Dreyfus Corp., Louisiana Pigment, Louisiana Rice Mill, Phillips 66, Pinnacle Entertainment, Port Aggregates, Reid and Company, Sam’s, Sasol, Sempra Energy, Shaw Modular Solutions, Talen’s Marine, Trunkline LNG, Union Pacific Railroad and USDA.

On the heels of the port’s decision to option to lease 200 acres to G2X, Magnolia LNG announced plans for a $2.2 billion export facility on Thursday to be located on Port of Lake Charles property. Maurice Brand, Magnolia LNG managing director and joint chief executive director, announced plans to develop a natural liquefaction production and export facility that would create 45 new permanent jobs and an estimated 1,000 construction jobs.

The mid-scale LNG facility would be located on 108 acres at the port’s Industrial Canal and would produce 4 million metric tons of liquefied natural gas per year. Construction would be in 2015 pending the company’s attainment of permits and final financing.

The Port of Lake Charles encompasses 203 square miles in Louisiana and owns and operates two marine terminals and two industrial parks and is the fourteenth-busiest seaport district in the U.S. according to the U.S. Army Corp of Engineers. For more information on the Port of Lake Charles, visit www.portlc.com or call 337-493-3513.

FMT to act as Exclusive Terminal Services and Stevedoring Services Contractor

Posted on: December 18th, 2012

NOTICE:
Please be advised that the Lake Charles Harbor & Terminal District has signed a 4-year agreement with Federal Marine Terminals (FMT) to act as its exclusive Terminal Services and Stevedoring Services contractor.  This exclusive agreement applies to all bagged Commercial and bagged USDA PL- 480 cargos handled at the Port of Lake Charles. This agreement takes effect February 1, 2013. The Port of Lake Charles will continue to issue rates on PL-480 USDA cargos as it has in the past.  The contact information for Federal Marine Terminals follows:

Matt McPhail – Sales and Marketing Manger
FMT Charlotte
1616 Cleveland Ave. Ste. 210
Charlotte, NC 28203
Email: fedmar@fedmar.com
Ph: 704-714-4644
Fax: 704-357-9111

Any question, please contact Federal Marine Terminals directly or

Dan Loughney or Therrance Chretien
Port of Lake Charles
dloughney@portlc.com

tchretien@portlc.com

Ph: 337-439-3661

 

 

 

Sasol Decision, Years in the Making, Will Benefit All of Southwest Louisiana

Posted on: December 11th, 2012

Sasol’s major announcement Monday to spend up to $21 billion in Southwest Louisiana would never have made national headlines without an abundance of regional efforts.

George Swift, president and CEO of the Southwest Louisiana Economic Development Alliance, said Sasol’s announcement Monday “put Southwest Louisiana on the map.”

“This will increase interest in our area by investors and workers,” he said Tuesday. “To get this type of exposure in The New York Times and other economic development publications will create more awareness for Southwest Louisiana.”

Swift said businesses not just in Westlake but in all of Southwest Louisiana will have potential for more customers.

“Now would be a good time for businesses to do an analysis on what they can do for the future and take advantage of it,” he said.

Swift also said the fact that Sasol is making this investment is a tribute to the management and workers at the company’s current facility in Westlake.

Westlake Mayor Dan Cupit said he takes a lot of pride in being part of Sasol’s growth.

“We are excited because we want to be the first neighbor and the best neighbor they have,” he said Tuesday. “Most of all we’re glad to see we have a workforce that will be developed.”

Cupit said the exposure, of course, is good for the city, the parish and the state.

And the Port of Lake Charles was one of the major players in helping Sasol find the 650-acre site within the vicinity of Sasol’s existing site. Port officials also assisted Sasol with options to buy the property needed to make the expansion a reality.

Michael Dees, general counsel at the port, said Sasol officials met with port officials nearly two years ago and said they were considering an expansion.

“They were concerned about their ability to voluntarily acquire land for the expansion,” Dees said. “It worked more efficiently or quickly for the port to help acquire the land.”

Dees said that without the ship channel Sasol would have never considered locating in Southwest Louisiana.

Port Executive Director Bill Rase said the port was involved from the start to finish, including working with the state Department of Economic Development.

“We wanted to help Sasol and the LED to make sure the project came to Louisiana,” Rase said. “At this point, the port hasn’t benefited other than the fact that Sasol is coming to Louisiana.”

Rase said that down the road the port will be more involved in the movement of product through the ship channel.

“The channel will get more use and be more of a viable situation for the port,” he said.

“The fact that they’re here is a benefit to the whole community. We may have to work out an operating agreement down the road. We didn’t just buy the property and get out of the way. Our intent is to be involved throughout the project.”

Article by Lance Traweek, American Press, 12/5/12

 

Port secures 25-year contract with $2.5-billion clean energy plant

Posted on: October 30th, 2012

The Port of Lake Charles has secured a $2.5-billion first-in-the-nation gasification plant project to be located on port property and adjacent to the port’s bulk cargo handling facility known as Bulk Terminal No. 1.

The Port of Lake Charles has partnered with Lake Charles Clean Energy LLC (LCCE), a subsidiary of Leucadia Corporation, through a 25-year operating agreement that will greatly enhance the economic position and stability of the port over the next 25 years and beyond. To be able to efficiently handle this large volume of new cargo, the port’s Bulk Terminal No. 1 facility will need to be completely reconfigured and improved at an estimated cost of $100 million dollars.

LCCE has concluded several major long-term commercial offtake contracts—up to 25 years each—with three major companies, including British Petroleum Products North America, Inc. (BP), one of the top five refiners in the U.S. These purchase contracts represent a major step on the path to groundbreaking for this first-of-its-kind processing facility. Construction on the new plant is expected to commence by mid- 2013.

LCCE will use new gasification technologies to cleanly produce industrial liquid and gas products from petroleum coke (petcoke). These products—methanol, sulfuric acid, argon, carbon dioxide, and hydrogen—will be sold by LCCE to BP, Air Products and Chemicals Inc. and Denbury Onshore LLC. The products can then be safely and cleanly reused in a variety of manufacturing processes. Additionally, substantially all of the carbon dioxide (CO2) that is generated in the high-temperature gasification process of the new plant will be captured and used for secondary oil recovery, enhancing existing supplies of oil for the nation’s energy needs. Methanol and CO2 are known as greenhouse gases, and LCCE will capture and sell these as usable products.

Through an operating agreement with LCCE, the Port of Lake Charles will provide cargo-handling services to unload and deliver petroleum coke and other materials needed for the plant operation. The port will also load trucks, railcars, barges and ships with LCCE’s liquid products for transportation to the plant’s customers. Port personnel will be used in these activities.

“The Port of Lake Charles was able to provide a unique combination of location, infrastructure and transportation capabilities to make this unique plant project work,” said La. House Speaker Chuck Kleckley, who worked closely with the company and the port to secure available financing mechanisms and necessary infrastructure needs as an incentive to attract the new plant to the Lake Charles area.

The impact of this project on port operations is significant: it will double the cargo tonnage handled at Bulk Terminal No. 1 to approximately 6 million tons annually, and will require cargo handling 24 hours a day, seven days a week.

The physical transformation of the bulk terminal will begin immediately with the relocation of current port customers so as not to negatively impact current customer cargoes. Next, the petcoke storage area will be reconfigured. An additional 1,000-foot concrete discharge dock with conveyors will be built to transport inbound coke to the storage area. A separate 1,000-foot liquid dock will be constructed to handle the loading of liquid products to a newly constructed tank farm, and later to vessels and barges.  This infrastructure will allow the port to handle the additional import tonnage of 2.6 million tons of petroleum coke and the export of 1.25 million tons of liquid products per year.

“Fortunately, the port is in a position to move quickly to take care of the infrastructure and operational needs that will make this project happen,” said William J. Rase III, executive director of the Port of Lake Charles.

The new project will bring a $2.5-billion capital investment and nearly 1,500 construction jobs for an estimated three years. When completed, the plant will create 165 permanent jobs, paying highly competitive wages and benefits for those trained in petroleum technology and other training programs currently offered at local educational institutions. In addition, the operation of the LCCE plant will require approximately 50 new full-time employees at the Port of Lake Charles for loading and unloading related cargos.

The Port of Lake Charles worked closely with the state and federal governments to ensure the project could take advantage of federal financial incentives. Rase credits U.S. Senators Mary Landrieu and David Vitter and U.S. Rep. Charles Boustany, along with former State Senator Willie Mount and all the Southwest Louisiana legislative delegation, with helping to clear the way for the plant to benefit from Gulf Opportunity Zone (“GO Zone”) tax-exempt bonds available from Hurricanes Rita and Ike which will be issued by the port for the project.

Additionally, the U. S. Department of Energy awarded LCCE a $261-million grant as part of an effort to encourage the capture of greenhouse gases from industrial sources. Methanol and CO2, both greenhouse gases, will be captured and sold as usable products by LCCE.

“This new state of the art plant is a total win-win-win,” said Harry Hank, president of the Board of Commissioners for the Port of Lake Charles. “Southwest Louisiana’s economy and the port will benefit for a very long time from this project that creates badly needed jobs for our area by using innovative green technology to economically produce useful products for numerous manufacturing and production facilities through-out the United States.” said Hank.

Port to construct new admin building

Posted on: October 28th, 2012

New construction is planned for the administrative offices of the Lake Charles Harbor & Terminal District, which operates the Port of Lake Charles.

In a 7-0 vote, the district’s board of commissioners awarded Jeff Kudla AIA Architect LLC a contract for site selection and design of a new port administration building, which will serve as the port’s new headquarters.

The Port’s current administration building at 150 Marine St. in Lake Charles has been leased by the U.S. General Services Administration (GSA).

The Port’s administrative offices have moved to 751 Bayou Pines East, Suite P.

The Kudla firm is responsible for the design of many notable downtown buildings including the new Lake Charles Transit building (Ryan Street at Gill Street) and Empire of the Seed’s Phoenix Building (Ryan Street at Kirby Street). The firm recently designed Sowela Technical Community College’s School of Nursing building.

The Port of Lake Charles encompasses 203 square miles in Calcasieu Parish, is governed by a seven-member board of commissioners and operates marine terminals, properties zoned for industrial use and two industrial parks. For more information on the Port of Lake Charles visit www.portlc.com or call the Port’s Marketing Department at 337 493-3513.

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