Entergy Louisiana, a subsidiary of Entergy Corporation, has broken ground on the $872m, combined-cycle, natural gas-fired power plant in Lake Charles, Louisiana.
The company has selected EPC contractor CB&I to work with an Entergy team on the completion of the Lake Charles Power Station.
Nearly 700 people are likely to be employed during the construction and 31 are expected to get full-time employment after the completion of the power plant.
The construction of the plant is expected to benefit Calcasieu Parish the most, as $1bn in new business sales and $282.9m in new household earnings are likely during the construction phase.
The plant is expected to reduce customer energy costs between $1.3bn and $2bn over its 30-year life.
The power plant is expected to begin commercial operations by June 2020.
Louisiana Governor John Bel Edwards said: “We are truly blessed by the tremendous amount of new industrial construction and economic activity centred around Lake Charles.
“Our commitment to improving our infrastructure is critical and serves as one of the primary reasons investors are flocking to Louisiana. We’re proud to support Entergy in this vitally important project to produce cleaner, more efficient power for residential and commercial ratepayers in Louisiana.”
Entergy Corporation chairman and CEO Leo Denault said: “The Lake Charles Power Station will provide much-needed generating capacity for the region, and it represents another step toward increasing our environmental efficiency and modernising Entergy Louisiana’s fleet.”
Entergy Louisiana president and CEO Phillip May said: “This new unit is another element of our plan to ensure there is an abundant supply of clean, affordable, safe and reliable energy available to meet the needs of our current customers as well as keep pace with Louisiana’s expanding economy.
“The Lake Charles area is one of the fastest-growing regions in the nation thanks to the billions being invested in new and expanded industrial facilities.”