Louisiana Shipyard Secures $300 Million Tugboat Contract
A shipyard in Plaquemines Parish has secured a significant contract worth $300 million to construct tugboats for Woodside Energy’s liquefied natural gas (LNG) export terminal currently being developed near Lake Charles. Governor Jeff Landry announced the deal at a press conference, revealing that C&C Marine and Repair’s Belle Chasse facility will build four diesel-electric hybrid tugs for the $17.5 billion project, which is slated for completion in 2029. This contract is expected to generate approximately 60 construction jobs and an additional 40 permanent positions through the joint venture responsible for operating the tugboats.
Economic Impact and Job Creation
The contract with Woodside Energy marks a significant achievement for Governor Landry’s administration, which has actively pursued large-scale industrial projects in the energy and manufacturing sectors. During the announcement, Landry emphasized the importance of Woodside’s decision to build the tugboats in Louisiana, highlighting the positive economic ripple effects of such investments. “This is absolute proof that when you have the size of investment and commitment of folks like Woodside to come into Louisiana and to do large-scale projects, it is like a high tide that lifts all boats,” he stated.
As Louisiana continues to emerge as a key player in the global LNG market, the state now accounts for over 60% of the nation’s LNG exports. LNG is increasingly viewed as a cleaner energy alternative to coal, aligning with global trends toward renewable energy sources. However, critics argue that new export terminals may perpetuate reliance on fossil fuels and hinder efforts to transition to more sustainable energy solutions.
Currently, Louisiana operates four LNG terminals, with two more under construction, including the Woodside facility. Additionally, four other terminals have been approved but are not yet under construction, according to the Energy Information Administration. Notably, Venture Global, located just 30 minutes from C&C’s shipyard, is expanding its LNG export terminal, which is one of the largest in the country.
Partnerships and Future Prospects
The contract for the tugboats was awarded to Green Tug Towing, a joint venture between Harbor Docking & Towing, a Lake Charles maritime company, and Seattle-based Saltchuk Marine. Green Tug will oversee the construction and operation of the tugs, creating 40 permanent jobs, as confirmed by President Thomas Springer. C&C Marine will serve as a subcontractor, providing the necessary labor and facilities for the construction of the vessels.
While the exact financial distribution of the $300 million contract among the three companies remains unclear, Woodside’s commitment to local partnerships underscores its dedication to integrating with Louisiana’s communities and businesses. “This contract, and our commitment to partnering with local suppliers, highlights our focus on building our project hand in hand with Louisiana communities, lands, and businesses,” said Daniel Kalms, Woodside’s international chief operating officer.
C&C Marine and Repair President Tony Cibilich noted that the construction of the new tugs will take approximately two years, significantly longer than the usual turnaround for repairs and smaller orders at the shipyard. This contract is expected to occupy about 30% of the Belle Chasse facility’s capacity at any given time, providing a substantial boost to the shipyard’s operations.
Established in 1997, C&C Marine has grown from a small operation to one of the Gulf Coast’s most advanced shipyards, boasting over 500,000 square feet of space. The facility is known for its cutting-edge technology, including the largest robotic painting and blasting facility in the region. The new tugboats will enhance Green Tug’s fleet of hybrid vessels, which are designed for improved fuel efficiency and reduced emissions, contributing to a more sustainable maritime industry.
