ALT Louisiana Update: Department of Energy delays approval of two LNG export terminals in Louisiana

ALT Louisiana Update: The U.S. Department of Energy will not complete its review of two liquified natural gas (LNG) terminal in Southwest Louisiana until the Federal Energy Regulatory Commission (FERC) finishes additional air quality analyses. FERC’s notices came in response to a July decision by the D.C. Circuit Court of Appeals that require it to further analyze how local air quality would be affected by pollution from the terminals. For Commonwealth LNG, FERC will study the effects of nitrogen dioxide emissions. For CP2 LNG, FERC will analyze the effects of emissions of nitrogen dioxide and fine particulate matter. Both types of pollution are tied to heart and lung diseases.

ALT Louisiana Update Indorama seeks tax breaks for plastics plant expansion in Westlake, Louisiana

ALT Louisiana Update On Nov. 21, 2024, Indorama Ventures Olefins applied for tax breaks through Louisiana's Industrial Tax Exemption Program to expand its plant in Calcasieu Parish, in Southwest Louisiana. The facility manufactures ethylene, a key ingredient in plastics and other chemicals. The program offers an 80% abatement on property taxes over 10 years and is among the largest industrial subsidies in the U.S. The state of Louisiana previously awarded the company at least $73 million in tax breaks to restart the facility, which has experienced repeated mechanical failures that led to emergency flaring of gases beyond the legal limits set in its Clean Air Act permit.

ALT Louisiana Update FERC suspends its approval of CP2 LNG terminal in Louisiana to make time for additional air quality review

ALT Louisiana Update The Federal Energy Regulatory Commission (FERC) has delayed the construction of a new liquified natural gas (LNG) terminal in Southwest Louisiana until it can redo its analysis of how the project would affect local air quality. FERC’s Nov. 27 order suspended its July 2024 authorization for the CP2 LNG Terminal and CP Express Pipeline. The terminal would be capable of exporting up to 28 million tons of LNG per year. FERC acknowledged that a recent D.C. Circuit Court decision requires FERC to do an additional analysis of how the terminal’s emissions of nitrogen dioxide and fine particulate matter would affect local air quality. Both types of pollution are tied to heart and lung diseases.

ALT Louisiana Audit Louisiana failing to keep up with plugging of orphan oil & gas wells

ALT According to a report from the Louisiana Legislative Auditor, from July 2013 to April 2024, the number of orphaned wells in Louisiana has increased more than 68 percent – from 2,826 to 4,785. This is despite the state plugging an average of 257 orphaned wells per year from the 2020 through 2023 fiscal years. The audit found that Louisiana’s Office of Conservation, which is responsible for plugging wells, is legally blocked from collecting enough funding to address the problem. Auditor staff estimate it would take $542.9 million to address the “current population” of orphaned wells, but state law requires that the state stop collecting fees on oil and gas production if the fund used to plug wells exceeds $14 million.