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The Economic Times
The Economic Times

Destroyed in 2005, reborn through LNG: Inside America's unlikely energy powerhouse

Once left in tatters by Hurricane Rita, Louisiana's Cameron Parish is now at the heart of America's liquefied natural gas (LNG) boom, a transformation that is bringing billions in revenue, reshaping global energy flows and tying the fortunes of a tiny coastal community to Europe's energy security, according to a BBC report .

Nearly two decades after Hurricane Rita devastated Cameron Parish in 2005, the sparsely populated Louisiana county has emerged as one of the world's most important LNG export hubs, a turnaround that residents once thought impossible.

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The storm destroyed or severely damaged more than 90% of homes in the parish and left behind an estimated repair bill of $2.75 billion. For Michael Fewell, who was 16 when Rita struck, the memories remain vivid.

"It looked like a war zone," Fewell told the BBC .

He recalled spending days collecting dead cattle that had been thrown into homes by the hurricane while National Guard helicopters ferried drinking water into isolated communities.

"They were, by far, some of the darkest days of my life."

Today, Fewell serves as president of Cameron Parish's elected governing council. And the place that once struggled to recover from one of the worst natural disasters in its history is preparing for a dramatically different future.

"We are going to have more money than we need," he told the BBC , pointing to the massive revenues expected from LNG exports.

How Cameron became America's LNG gateway

The catalyst behind the parish's revival is liquefied natural gas.

Built on marshland where cattle once grazed, Sabine Pass — the world's largest LNG export terminal — began shipping cargoes overseas in 2016. LNG is produced by cooling natural gas to around -162°C, shrinking its volume roughly 600-fold so it can be transported efficiently by specialised tankers.

Sabine Pass alone can process 29.5 million tonnes of LNG annually. Cameron Parish already hosts two other LNG terminals, while a fourth — the $13 billion Commonwealth LNG project — is under construction. Expected to begin operations by 2030, it is projected to produce 9.5 million tonnes of LNG every year, enough to supply heating for around six million homes.

According to the BBC, Cameron Parish is expected to receive more than $4 billion in tax revenues over the next decade from its LNG facilities.

The boom reflects a broader shift in the global energy market. A decade ago, the United States exported very little LNG. Today, it is the world's largest exporter, with Louisiana accounting for around 60% of US LNG shipments and Cameron Parish handling roughly two-thirds of the state's exports, the report said.

Tim Wyatt, president of Commonwealth LNG's parent company Caturus, said the US has become an increasingly attractive supplier because of its abundant gas reserves and competitive pricing.

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"There is cheap, abundant supply here, while being a flexible, reliable, relatively low cost and transparent producer that flows to the places that need it the most," Wyatt was quoted as saying.

Europe's energy lifeline—and a growing dependence

The LNG surge has gathered further momentum amid geopolitical tensions.

The recent US-Israel conflict with Iran, coupled with concerns over disruptions around the Strait of Hormuz, has increased Europe's reliance on American LNG as supplies from other exporters, including Qatar, face uncertainty, the BBC reported.

Energy analysts at the Institute for Energy Economics and Financial Analysis (IEEFA) told the broadcaster that the US now supplies roughly two-thirds of Europe's gas imports, up sharply from about a quarter in 2021.

Susan Bourgeois, secretary of Louisiana Economic Development, said European buyers increasingly value the reliability of long-term American supplies.

"They want reliable relationships for their energy," she told the BBC, adding that many European customers have shifted towards longer-term contracts focused on "dependability and predictability."

Not everyone views the growing dependence as an advantage.

Ana Maria Jaller-Makarewicz, an analyst with IEEFA, argued that Europe's increasing reliance on US LNG leaves it competing with Asian buyers for the same cargoes, keeping prices elevated. She expects the European Union could source as much as 80% of its LNG imports from the US by 2030.

The cost pressures are already visible across Europe. At Germany's InfraLeuna industrial complex, annual gas costs have risen sharply since before the Ukraine war. Meanwhile, household electricity and gas bills across Germany, the UK and much of the European Union have climbed significantly over the past few years.

Back in Cameron Parish, however, Fewell's focus remains closer to home.

Median household income in the parish has climbed from $59,555 in 2010 to about $75,000 in 2024, according to figures he shared with the BBC . For him, the biggest success would be seeing younger generations stay instead of leaving in search of opportunities elsewhere.

"If I had one dream," Fewell said, "it's to bring our youth back to our parish."

For a community that once faced the prospect of disappearing after Hurricane Rita, the LNG industry has transformed not only its economy but also its expectations for the future — even as the gas fuelling homes across Europe continues to reshape global energy politics.

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