US LNG Drive Employment And Housing Demand
Welcome to the Real Estate Espresso Podcast, your morning shot of what’s new in the world of real estate investing. I’m your host, Victor Menasce. On today’s show, we’re exploring the development of megaprojects, specifically liquefied natural gas facilities, and how this is impacting demand for real estate along the Gulf Coast in the US.
But first, we’re building a new apartment building in Ottawa, Canada that’s aimed at meeting the housing needs in one of the hottest areas of the nation’s capital. Projects in Canada are substantially isolated from the uncertainties associated with the ongoing US trade war. In addition, interest rates in Canada are significantly lower than they are in the US. There’s a window to capitalize on this exciting investment opportunity for accredited investors. This includes investors residing in the US. However, this is not a direct solicitation for investment. All investments would be by prospectus only and comply with both Canadian and US securities regulations. To discover more, visit ystreetcapital.com where you will learn more about this investment opportunity. The link will be in the show notes. Here you’ll get to see other opportunities in our development pipeline as well.
Today, we’re examining the development of liquefied natural gas facilities and how this is impacting demand for real estate along the US Gulf Coast. We’re going to look at two main areas on the show today, putting these investments into context. Each of them measures in the tens of billions of dollars.
One of the largest players is Venture Global, who have chosen to concentrate their efforts in two main areas. The first is in Cameron Parish in Louisiana. Cameron Parish presents a challenging environment, constantly battling against the forces of nature. Developing here is arduous and living conditions are tough. Roughly a third of the land mass in the entire parish consists of wetlands and marshes, presenting significant constraints when it comes to building. Infrastructure such as liquefied natural gas facilities or houses requires driven piles until a stable substrate can be reached.
Furthermore, regular hurricanes have reduced the parish’s resident numbers significantly, with only about 4,000 to 5,000 residents in the entire parish today, a fraction of what it used to be. Nevertheless, these developments, which demand sizeable construction workforces and significant permanent workforces once in production, are a substantial employment driver.
The Venture Global LNG facility is located on the east side of the Calcasieu Shipping Channel, providing considerable employment opportunities during construction, as well as ongoing staffing needs. Anticipated to reach full commercial operations soon, the Venture Global facility is expected to extend its production capacity from 12 million metric tons a year to 12.4 million.
We also have substantial developments happening with the Woodside LNG facility, originally called Driftwood. Owned by Woodside of Australia, the Louisiana LNG project is anticipated to support around 15,000 national jobs at its peak construction period, with at least a third of those jobs expected to be in the immediate area of the LNG plant. This influx of workers is driving demand for housing and rising rents in the area.
Understanding the demand involves forming connections with the recruitment firms tasked with hiring for these major projects. That’s what we do in our company. It’s crucial to remember that investments in an area must be based on clear, factual information, backed up by announced contracts and concrete evidence of people moving into the marketplace. As you think about that, have an excellent rest of your day. We’ll speak again tomorrow.
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