Posted: Mar 1, 2013 9:34 AM
Updated: Mar 1, 2013 9:34 AM
PORT ALLEN, La. (AP) Houston-based Waller Marine will build a small-scale liquefied natural gas facility at the Port of Greater Baton Rouge in Port Allen to supply vessels with the cleaner-burning fuel they will need to keep up with tougher environmental standards.
The Advocate reports (http://bit.ly/Z6vp1i ) the facility is small compared with the billion-dollar LNG projects announced in south Louisiana in recent years. Company officials said Thursday Waller Marine plans to spend $200 million initially, though that amount could double as it adds capacity.
Taylor Norton, Waller's chief general counsel, said the facility would create upward of 300 construction jobs. It will employ 45 people initially and could double that when fully built out.
Norton said Waller Marine wants to have the LNG facility operational within the next year and a half.
The first "train" industry term for the unit in which the LNG is created from regular natural gas would have the capacity to produce 450,000 gallons of LNG per day. Three additional trains are planned and would cost about $70 million each, effectively doubling the company's initial $200 million investment.
The fuel would then be sent by pipelines and put onto barges, which would fuel the ships.
Port Director Jay Hardman said the lease, which is 10 years with two 10-year options, would bring the port $54,000 a year in base rent and, when the facility is running at full capacity with four trains, about $600,000 a year in throughput.
Information from: The Advocate, http://theadvocate.com