 |
 |
|
|
AGL Resources plans to expand Jefferson Island Storage & Hub’s (JISH) current operations by adding two additional natural gas storage caverns in the solid impermeable salt structure under Lake Peigneur to the two caverns operating currently.
Applications for permits for the expansion have been filed with, or granted by, a number of local, state and federal regulators. Learn about our regulators.
A JISH expansion provides additional and needed natural gas storage and hub services with direct connections to the Henry Hub, where natural gas is piped in from the Gulf of Mexico.
Natural gas salt dome storage offers an increased level of surety of supplies for Louisiana natural gas users, as well as for customers outside of the state. During times when shortages of natural gas supplies can take place, as was demonstrated after Hurricane Katrina and Hurricane Rita in 2005, the need for safe and dependable storage facilities is underscored.
Expanding JISH offers several advantages as it will:
- Help meet the growing demand for natural gas regionally and nationally.
- Help stabilize the supply and price of natural gas.
- Increase the availability and reliability of natural gas during emergencies like Hurricane Katrina and Hurricane Rita.
- Increase local and state economic benefit.
JISH is an intrastate storage facility that benefits a number of national interests as well as the following local interests:
- Louisiana gas
- Louisiana production companies
- Louisiana pipelines
- Louisiana distribution companies
- Louisiana manufacturers
- Louisiana businesses that employ Louisiana citizens
- Louisiana utilities that supply Louisiana residential customers
In addition to its role in meeting the demand for natural gas supplies, the JISH expansion has direct new economic development benefits for businesses and governmental services that begin with the start of construction activity and continue as long as the facility exists.
In a report prepared by Louisiana State University at Shreveport Center for Business and Economic Research for Jefferson Island in April 2006, it is estimated that once the cavern expansion begins, the economic benefits for Louisiana and Iberia and Vermilion Parish is estimated to be in excess of $8.5 million during the construction period. The benefits are comprised of the following:
- 69 direct and indirect new temporary jobs in the Iberia/Vermilion area will be created during construction and three permanent jobs when the expansion is completed.
- Sales tax receipts from the material portion of construction costs
- Additional payments paid to Entergy Louisiana, the local utility powering JISH, during the construction period.
There are also substantial economic benefits for the state, in addition to the two parishes, during construction and after the Jefferson Island Storage & Hub (JISH) expansion is complete. The state will receive royalty payments for mining salt prior to storing natural gas in the caverns. The LSU Shreveport Center for Business and Economic Research report estimates that once the cavern expansion is complete there will be continued annual economic benefits of over $1.2 million annually comprised of permanent jobs, and property taxes on the gas stored in the caverns and equipment used to operate the facilities.
The estimated local and state economic benefits from the JISH expansion are estimated to total $30 million over a period of 20 years.
|
|
|
|
|
|
|
|
|
|
|
|
 |
|