Magnolia LNG receives ITEP tax incentive

Magnolia LNG receives ITEP tax incentive
Source: Magnolia LNG

LAKE CHARLES, La. (KPLC) - Magnolia LNG has been approved for an Industrial Tax Exemption Program (ITEP) incentive by the state, the company announced Wednesday.

The long-planned $4.4 billion Magnolia project is expected to generate 1,500 construction jobs and 200 permanent jobs in Southwest Louisiana.

ITEP provides an 80 percent property tax abatement to manufacturers for five years, with the option to renew for an additional five years, according to Louisiana Economic Development.

Gov. John Bel Edwards was quoted in Magnolia’s news release as saying:

“Louisiana leads the U.S. as an exporter of liquefied natural gas, and the Magnolia LNG project will extend our state’s production and technology leadership in this vitally important energy market. By the end of 2019, Louisiana producers will generate enough LNG to fuel 24 million homes on a daily basis. Our next wave of LNG projects, which will include Magnolia, can raise that total to the equivalent of 63 million homes. With a projected 38 billion cubic feet of natural gas to be produced daily along the Gulf Coast, Louisiana is well-positioned to continue our LNG leadership.”

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