Sunday, March 12, 2006

Economic Benefits Pale in comparison to Profits of Long Beach LNG

While Sound Energy is touting up to $20-30 million in public economic benefits to their proposed Liquefied Natural Gas terminal in the heart of Long Beach, those numbers don't shake a stick at the profits the company stands to gain.

SES stands to gross $3 billion to $4 billion a year, and earn net profits of $90 million a year once the terminal is in operation (a figure confirmed by Magaddino’s study, which estimates $8 million a year in state income tax).

“It is certainly true that the project will have a positive economic impact upon the region,” Garner says. “However, clearly SES must fairly compensate the city and its residents for locating this controversial and potentially risky, but highly profitable, project within the city’s borders.

"Based upon its proposal, SES has evidently not fully embraced the concept of partnership with the city and its residents.”

With potential profits like that, you'd have to wonder why the company does not pony up the money for the City to build the necessary infrastructure!