LNG protestors: Why would you give a tax break worth $373 million in return for 88 permanent jobs?

BROWNSVILLE, Texas – Liquified Natural Gas (LNG) tax abatements are a bad deal for Cameron County, according to a new report from the South Texas Environmental Justice Network.

This group, along with Valley Interfaith and members of the Carrizo/Comecrudo Tribe of Texas, delivered copies of the report to the offices of Cameron County commissioners on Wednesday, May 29. Before delivering the report, they held a press conference outside Cameron County Courthouse. 

“Both Texas LNG and Rio Grande LNG have already gained federal approval for their projects located at the Port of Brownsville. Tax abatement as a means of incentive to locate are entirely unnecessary. These export terminals must pay their full share of tax in order to provide Cameron County with the revenue needed to mitigate whatever damage they would cause to the County’s people and environment,” the report states.

“Rather than give away our local tax money to an industry that would not pay taxes, Cameron County would benefit more from appropriating our local tax revenue to fix roads, address the severe drought, build better flooding infrastructure, expand eco-tourism, and provide more services to low-income community members and colonia residents.”

Two companies are planning to build LNG export terminals at the Port of Brownsville: Rio Grande LNG and Texas LNG.

According to the STEJN report, Rio Grande LNG would get an abatement of $37.3 million per year for the next ten years, under a proposal that will go before Cameron County Commissioners Court early next month. But, the report states, only 88 permanent jobs will be created at the export terminal.

According to the STEJN report, Texas LNG would get an abatement of $3.4 million per year for the next ten years, under a proposal that will go before Cameron County Commissioners Court early next month. But, the report states, only 35 permanent jobs will be created at the export terminal.

The South Texas Environmental Justice Network, Valley Interfaith, and the Carrizo/Comecrudo Tribe, along with other environmentalists, are urging county commissioners to reject the tax abatement proposals. They do not want commissioners to give a tax break worth $34 million over ten years to Texas LNG and a tax break of $373 million over ten years to Rio Grande LNG.

However, the groups say they are having a hard time getting an audience with county commissioners David Garza and Gus Ruiz. 

Here are interviews with some of the key players at the press conference, along with the remarks of a Carrizo/Comecrudo Tribe member.

Bekah Hinojosa’s analysis:

Rosalie Tristan’s analysis:

Dr. Christopher Basaldú‘s analysis:

Editor’s Note: The Rio Grande Guardian will post the analysis of Rio Grande LNG, Texas LNG, Cameron County Commissioner David Garza, and Cameron County Commissioner Gus Ruiz as soon as we have it.

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