Blanco Demands a Share of Profits from Offshore LNG Terminals
In the wake of Louisiana Gov. Kathleen Blanco’s veto of Freeport-McMoran’s Main Pass LNG facility permit, LNG developers and industry analysts are concerned that her veto stipulation that the state receive a portion of the revenue generated from offshore LNG import facilities in the Gulf Coast could discourage LNG development in the area. “The concept of revenue sharing for an LNG facility is completely new to us,” said Neil Buckingham, manager of state government relations for Shell Oil Co. He further added, “we have a permit [for Gulf Landing LNG], but that doesn’t necessarily mean we have to build.” Eric Smith, a professor and associate director of the Entergy-Tulane Energy Center in New Orleans, says Blanco may be using the revenue demand in her fight to increase the state’s share of royalties from offshore oil and gas production. The Baton Rouge Advocate has the story.