Construction and Operation of Rio Grande LNG Would Provide Major Economic Boost to Cameron County, Newly Released Study by The Perryman Group Finds
December 15, 2015
The Woodlands, Texas – A recent study conducted by Texas based independent economic research company, The Perryman Group, found that, should the project move forward, NextDecade, LLC’s proposed Rio Grande Liquefied Natural Gas (LNG) export project and its associated Rio Bravo Pipeline would provide a major economic boost to Cameron County and the greater South Texas community.
The study, commissioned by NextDecade, estimated that over the course of construction and operations, the Rio Grande LNG project would inject billions of dollars into the local economy, supporting more than an estimated 3,000 permanent jobs in Cameron County and contributing millions in new tax dollars. At the national level, the estimated impact would be even greater, adding more than five hundred million dollars to the US economy each year and creating nearly 5,000 permanent jobs.
Key Findings:
Construction and Non-Operational activities of Rio Grande LNG and Rio Bravo Pipeline is estimated to:
- Inject nearly $6 billion dollars into the local economy, representing a one-time addition equivalent to more than 67% of Cameron County’s current Gross Product[1]
- Generate 74,374 person-years of employment[2] in Cameron County
- Add an estimated $136.9 million in new tax receipts[3] for Cameron County
Ongoing Operations at Maturity is estimated to:
- Add approximately $326 million a year to Cameron County’s Gross Product, or more than 3.7% its current level
- Add a projected $526 million a year to US Gross Domestic Product (GDP)
- Create and sustain an estimated 3,256 permanent jobs[4] in Cameron County and an estimated combined 4,901 permanent jobs in the US overall
In addition to the substantial local benefits afforded by the project, The Perryman Group estimated that the improvement to the international balance of payments of the United States from the Rio Grande LNG project could potentially range from $11.5-$18.5 billion per year.
Construction of the facility and the pipeline is expected to create roughly 6,000 direct jobs with additional well-paid permanent jobs at the facility expected to exceed 200. Rio Grande LNG is actively working with local business, social, and educational organizations to maximize its ability to hire and buy locally, recently kicking off these efforts with a round of meetings that began in mid-November. An essential part of this work is understanding the long-term vision of the region to incorporate training that addresses the future needs of the Rio Grande Valley, as well as those of the project.
Rio Grande LNG is actively working to develop and inform the local business community of opportunities related to the project in an effort to maximize the number of contracts that can be fulfilled by local suppliers. A important first step is for interested businesses to register on Rio Grande LNG’s Vendor Registration form at http://www.riograndelng.com/vendor-registration/.
The project is seeking approval for six liquefaction trains, each with nominal LNG output capacity of 4.5 million tons per year. The terminal is to be engineered and constructed by CB&I, a world-class LNG engineering and construction company, using proven, safe, and reliable design and technology.
About The Perryman Group
The Perryman Group (TPG) is an economic research and analysis firm based in Waco, Texas, with over 30 years’ experience in assessing the potential impact of new business activity on a region. The firm has also been producing forecasts for Cameron County (the Brownsville-Harlingen MSA) for decades and is very familiar with the area’s economy. TPG has extensive experience in the oil and gas sector, including assignments for the US Department of Energy and the US Department of the Interior. Projects have also been performed for many of the largest energy companies in the world. These analyses have included, among others, forecasts, impact assessments, regulatory and environmental issues, and legislative and policy initiatives. In addition, the firm has frequently assessed the construction and operation of major new infrastructure projects of all types (highways, rail facilities, airports, electric generating plants and transmission lines, communications facilities, and airports), including several recent studies specifically involving natural gas liquefaction export projects.
About NextDecade, LLC
NextDecade, based in The Woodlands, Texas, is a global development and management company of land-based and floating LNG projects. The company delivers opportunities for customers to meet their unique needs by providing access to the full spectrum of the LNG value chain, including infrastructure development, natural gas supply, and project ownership. NextDecade’s current focus includes its Rio Grande LNG project in Brownsville, Texas, in addition to the Pelican Island LNG project in Galveston, Texas. Founded in 2010, NextDecade’s experienced team has developed, led, closed and operated industry-leading LNG, Gas and Electricity projects globally. For more information, please visit www.next-decade.com. More information about Rio Grande LNG can be found online at www.riograndelng.com.
Statements made herein by NextDecade, LLC (“ND”) or any of its officers, directors, members, shareholders, employees, advisors, representatives, contractors or agents (“ND Representatives”) may include statements of future expectations and other forward-looking statements that are based on such ND’s or ND Representatives’ present views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to materially differ from those expressed or implied in such statements. ND and ND Representatives assume no obligation to update any forward-looking statement or to update any information contained herein.
[1] Gross Product represents the regional equivalent of Gross Domestic Product, the most commonly reported statistic regarding national economic performance. 2015 Real Gross Product for Brownsville-Harlingen MSA estimated at $8.799 billion in 2009 dollars.
[2] Direct, indirect and induced. One person-year is equivalent to one person employed for a single year.
[3] Tax estimates incorporate extensive spinoff effects and assume that incentives are provided which are consistent with current law and in line with those provided to similar projects in recent years.
[4] Direct, indirect and induced.
A copy of the full report can be downloaded here.
A copy of the press release can be downloaded here.
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