The Crafty US State That’s Showing How to Thrive Under Trump

By Gavin Maguire

(Reuters) – Louisiana has long been overshadowed by its more showy neighbour Texas, which boasts a larger economy and population and has for decades wielded greater sway among policymakers in Washington DC and on the world stage.

But the Bayou State is staging a revival that could see it emerge as the more dynamic and influential Gulf Coast hub over the coming decades, thanks to a development blueprint that could be described as being all things to all people.

As the main exit point for U.S. LNG exports, Louisiana is a key cheerleader of the “drill baby drill” vibe stemming from the new administration of U.S. President Donald Trump, and is also home to some of the country’s most important natural gas basins.

Louisiana is the top export hub for LNG and crops, and is a major exit point for chemicals, fuels, forest products & coal

The state is also planning for a brand new multi-billion dollar steel plant that was celebrated at a White House ceremony earlier this year heralding a return of traditional manufacturing to the United States.

Yet Louisiana’s smokestack industries – which include century-old refining and chemicals sectors – are also at the cutting edge of an ongoing carbon capture drive that has made the state a major player in the clean energy field.

Throw in a leading hydrogen industry, a battery production sector and a growing data center presence, and Louisiana could offer something for whichever party is in power in Washington, with industries fit for America’s 21st century needs.

DEFT MESSAGING AND A CAPTIVE AUDIENCE

A key driver of Louisiana’s progress is a willingness to re-purpose the old and bolt on the new.

And that philosophy extends beyond bricks and mortar industry to marketing pitches and business mission statements.

For instance, projects that were touted as drivers of the energy transition under the Biden administration are now marketed as boosting energy security and job creation, which is much more palatable to the Trump administration.

These include businesses that reduce chemical plant emissions and are being positioned as leaders in carbon capture and sequestration (CCUS), which has high growth potential over the coming decades.

And Louisiana’s leadership position in CCUS is not just on paper, as the state is home to more than 60 carbon capture projects including 13 CO2 pipelines and several ammonia and hydrogen plants that intend to use CO2 as a feedstock.

Industrial gas producer Air Products is also building a complex in the state dedicated to widening hydrogen applications, which could extend to the state’s fertilizer and steel producers that are currently heavy natural gas users.

AMERICAN MADE

The liquefied natural gas industry has already established Louisiana as its primary hub, with roughly two-thirds of U.S. LNG exports – valued at over $30 billion in 2024 – departing via state terminals, according to trade intelligence firm Kpler.

And Louisiana’s share of LNG trade looks set to climb further once the Plaquemines LNG export facility reaches its scheduled full capacity by the end of this year.

Gas developers are also boosting extraction from Louisiana fields, especially from the Haynesville basin which contains gas with fewer impurities than other large deposits and so makes it ideal for profitably converting to LNG for export.

This flurry of extraction activity is also spurring growth in ancillary services in the state, including in the pipeline equipment production and maintenance sectors.

Other businesses and industries are also setting up shop in Louisiana.

Manufacturers including Hyundai Steel Ice Industries – a steel rail manufacturer for solar panels – and industrial equipment maker PSS have all announced plans to build new plants in the state within the past year.

Social media giant Meta plans to spend $10 billion to build a 4 million square foot data centre in the state, while consumer goods maker Procter and Gamble recently announced production line expansions at its Rapides Parish facility.

Manufacturers of chemicals and plastics are also expanding in the state, in the hope that the current push to re-shore factory production to the U.S. sparks higher demand for industrial ingredients.

COST PRESSURE

A growing supply of natural gas within the state – including via a new pipeline that will ferry gas from the Permian Basin direct to Louisiana’s main industrial hub from 2026 – is also luring industries in need of abundant power supplies.

For now, that swell in gas output is furnishing Louisiana with an additional competitive advantage, in the form of below-average electricity costs for industry.

At 10.7 cents per kilowatt hour, Louisiana’s commercial electricity cost is 16% less than the national average, according to data portal electricchoice.com.

That rate is also lower than those prevailing in Florida, Georgia, Mississippi, Michigan and Pennsylvania – states that also compete for manufacturing and technology company business, and is a key reason why businesses are drawn to Louisiana.

However, any substantial increase in industrial gas use – either for LNG exports or from local businesses that burn gas for power or processes – will likely place upward pressure on energy costs going forward.

And sharply higher overall energy demand is all but guaranteed once the businesses that are moving to or expanding in the state crank up, including Meta’s behemoth data center.

But with growing supplies of natural gas and plans to expand nuclear power generation in the state, local power suppliers are arguably better equipped than most to ensure energy supplies can keep up with demand.

That may help Louisiana emerge from the shadow of neighbor Texas – where strained grids and volatile power prices are common – and establish itself as a new critical hub for America’s future energy and industrial needs.

The opinions expressed here are those of the author, a market analyst for Reuters.

Reporting By Gavin Maguire; Editing by Michael Perry

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