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Louisiana court reinstates Formosa plant permit, but financial outlook still bleak

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Louisiana court reinstates Formosa plant permit, but financial outlook still bleak


Last week, the Louisiana First Circuit Court of Appeals overturned a lower court decision and reinstated a permit for Formosa’s proposed petrochemical complex in St. James Parish, located in the heart of an area commonly known as “Cancer Alley.”

The decision reverses a lower court ruling that demanded closer scrutiny of the project’s potential to cause a discriminatory health impact due to industrial air pollution saturation in an already heavily burdened African-American community.

The decision provides a go-ahead for a project that has yet to pass environmental muster at the federal level, ignores repeated warnings from Standard and Poor’s, and flies in the face of community sentiments that the siting of the chemical project is unjust. Despite all the legal machinations, however, Formosa has not issued a final investment decision (FID) that would give the corporate go-ahead for the project.

The reinstatement of the Louisiana permit has not reversed the series of negative economic factors that plague the project. An IEEFA analysis has indicated the project is financially unviable based on fundamental market factors.

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  1. The market for the products to be manufactured at the proposed facility currently remains oversupplied. On a global basis, world supply continues to outpace demand for polyethylene, polypropylene and ethyl glycols. This is likely to continue through 2030.
  2. The oversupply is likely to continue. New projects have recently been added to the market, and at least one more is in construction. CC Polymer’s Golden Triangle project in Texas is expected to come online in 2027, adding 1 million tons to U.S. markets. Shell opened its Pennsylvania petrochemical plant in 2021, which has shown modest performance, according to recent reports.
  3. The oversupply is not likely to be absorbed. Analysts see slow growth in North America. In the core export region (Northeast Asia and China), economic growth is expected to be slower than predicted when the plant was first planned.
  4. Increased demand also is likely to be dampened due to sustainability impacts, demographic change and legislative mandates.
  5. Export demand is unstable. In 2022, the United States exported 54% of the polyethylene produced. The industry’s reliance on exporting is likely to continue given the limited domestic market, with most of the exports going to China and Europe. Yet export scenarios predicated on these two arenas show instability in the medium and longer term.
  6. Competition with recycled plastic products will reduce the market share for virgin plastics. Recycling in the United States is expected to rise by 50%, achieving an 8.7% share of the market in 2030. The recycled plastics market share is expected to increase by 26% over the next decade, to 11% of the market in 2040. 
  7. The company faces significantly higher construction costs. With rising costs also weakening prices from oversupply, the company has not offered any indication to its investors that explains how the financial structure of the facility still meets the company’s internal return targets. 
  8. Standard and Poor’s, which offered strong cautions regarding the proposed petrochemical complex in October 2021, has not altered its opinion of the project. In October 2023, the company outlook was negative on lower demand, significant debt and higher competition in the commodity markets. The opinion repeated its concern that the Louisiana project faced a negative “political and market” environment. The negative outlook did not include any proposed new spending on the facility.

    Any further development action on the project is likely to trigger credit concerns like those expressed in the October 2021 opinion. Moody’s, which holds the company’s rating stable, has still indicated concerns about Formosa‘s plastic business debt levels. 

  9. Moody’s, Standard and Poor’s and Fitch each issued new climate guidance in the fourth quarter of 2023 that tightens the link between the sustainability of today’s business investments and companies’ mid-to-long-term profitability.

The financial fundamentals of this scenario have been sufficient to prompt a continued warning from Standard and Poor’s. Moody’s has taken note that rising socioeconomic inequality, political polarization and deteriorating governance threaten the otherwise strong financial outlook for the nation. The Louisiana appeals court decision can only feed the underlying stresses identified in both credit advisories.



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Letlow, Davis win Senate primary runoffs in Louisiana; will face off in November

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Letlow, Davis win Senate primary runoffs in Louisiana; will face off in November


BATON ROUGE, La. (WAFB) – Julia Letlow and Jamie Davis will face off this fall for U.S. Sen. Bill Cassidy’s seat after winning their respective party runoffs Saturday night.

Letlow won the Republican runoff over John Fleming with 57% of the vote, less than an hour after polls closed on June 27. Davis won the Democratic nomination in a landslide, securing 80% of the vote over Gary Crockett.

Letlow, Davis claim victories

“I’ll fight for our families, I’ll fight for our farmers. I’ll fight for our teachers. I will fight for our parents. I’ll fight for our law enforcement. I will fight for everyone in this room, and we are just getting started,” Letlow said.

Davis said the issues driving his campaign cross party lines.

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“Everybody wants better healthcare. Everybody wants better education for their children. Everybody wants a leg up with affordability. And everybody wants the Constitution to be upheld. Those issues are nonpartisan. I don’t have to change nothing but keep working,” Davis said.

Low turnout, Trump endorsement shaped Republican race

Estimated turnout was about 18% of registered voters. Political analyst Jim Engster said the low turnout actually benefited Fleming, who captured 43% of the vote, but was not enough to overcome President Trump’s endorsement of Letlow.

“He really had the 8 ball against him when President Trump endorsed Julia Letlow. President Trump is Hercules of Republican politics, and he’s carried this state three times by about 60 percent of the votes each time,” Engster said.

Engster said the results reflect the broader political landscape in Louisiana.

“It says that it’s more of the same. We’re a Republican state, and until further notice, we vote red in major elections,” Engster said.

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New closed primary system draws scrutiny

Saturday’s election was the first major cycle under Louisiana’s new closed party primary system, in which Democratic voters could only choose Democratic candidates and Republican voters could only choose Republican candidates.

Engster said the change had a significant impact on participation, pointing to Cassidy’s vote totals as an example.

“Bill Cassidy might very well have held onto his seat in an open primary. After all, in the last open primary, he got 1,228,000 votes. This time he got 99,000 votes, so that’s a big difference,” Engster said.

Engster said critics of the closed primary system will use the turnout figures to make their case.

“It’ll be a case in which those who are against the closed primary will make the case that ‘The open primary may have its flaws, but more people participate. And after all, that is what we want. We want more people voting in our elections,” Engster said.

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Road to November 2026

History suggests Republicans hold the advantage heading into the general election. Engster noted that Louisiana’s last elected Democratic senator was Mary Landrieu in 2008.

“It would really be a political miracle for Jamie Davis to win. Those things happen, but right now it’s a long shot, and there’s a lot of heavy lifting for him to do and for the Democratic Party to do to try to make up the inherent gap that is evident in Louisiana politics,” Engster said.

Letlow and Davis will face off in the general election on November 3.

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Winners announced for 40th annual Northeast Louisiana Arts Awards

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Winners announced for 40th annual Northeast Louisiana Arts Awards


WEST MONROE, La. (KNOE) – The Northeast Louisiana Arts Council announced the winners of the 40th Annual Northeast Louisiana Arts Awards during a ceremony held Thursday, June 25.

Winners in nine categories were revealed during the program, where top nominees in each category were also recognized. Members of the Arts Council, its board of directors, and invited guests joined friends and family in celebrating the honorees.

2026 Northeast Louisiana Arts Awards winners

  • Edmund Williamson Visual Artist of the Year: Stacy Thomas Medaries
  • Tommy Usery Performing Artist of the Year: The John L. Brown, Sr. Memorial Scholarship Band
  • BART (Business Art) Award: Creative Exchange
  • Volunteer of the Year: Jennifer Haynes
  • Dorothy Bassett Emerging Artist of the Year: Jari Richardson
  • Region 8 Arts Educator of the Year: Joni Dollar
  • Region 8 Higher Education Arts Educator of the Year: Emily Ezell
  • Literary Artist of the Year: Jamie Mayes
  • Community Arts Impact Award: Dr. Alicia Jones

For more information on the Northeast Louisiana Arts Council and its programs, click here.

Copyright 2026 KNOE. All rights reserved.



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Letlow, Davis advance in Louisiana’s U.S. Senate race

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Letlow, Davis advance in Louisiana’s U.S. Senate race


U.S. Rep. Julia Letlow and Jamie Davis, a row-crop farmer in Tensas Parish, won their party runoffs Saturday and will now face off for Bill Cassidy’s U.S. Senate seat in November.

Cassidy, one of seven Republican senators who voted to remove President Donald Trump from office after the January 6th insurrection at the U.S. Capitol in 2021, came in third during the Republican primary in May.

Letlow, who received backing from both Trump and Louisiana Gov. Jeff Landry, nearly won the primary outright with 45% of the vote. While heavily favored, Letlow lost ground in the runoff to Louisiana Treasurer John Fleming, but still won with at least 57% of the vote.

The Associated Press called the race for Letlow shortly before 9 p.m.

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“President Trump, thank you for encouraging me to get into this race, thank you for your endorsement, Louisiana loves you,” Letlow said in her victory speech. The second person she thanked was Landry. Trump later congratulated Letlow on Truth Social.

Davis captured 80% of the vote in the Democratic runoff over New Orleans businessman Gary Crockett. He led in every parish.

“ I’ve always been raised and trained that if you do the work, you should reap a harvest,” Davis said in his victory speech. “I didn’t know what the harvest was going to be, but I knew that we would reap a harvest, and it just happened to be a win to go to the United States Senate.”

Like Letlow, Davis almost captured enough votes in the May 16th primary to win with 47%. His initial runoff opponent, Nick Albares, ended his campaign in late May.

History will be made regardless of the outcome in November.

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Davis’ victory Saturday made him the first Black U.S. Senate finalist in Louisiana since Reconstruction.

Letlow is the first Republican woman to represent Louisiana in the U.S. House. If she wins in November, she would be the second woman elected from Louisiana to the U.S. Senate and the first Republican. Democrat Mary Landrieu served in the Senate from 1997 until 2014.

A hotly contested Republican race

The biggest issue Letlow and Fleming, conservative Republicans, appeared to differ on was carbon sequestration: the process of capturing and storing carbon dioxide underground.

Fleming completely opposes projects in the state, while Letlow said she trusts Gov. Jeff Landry to decide what’s best and support his moratorium on new permits.

“If a project is not safe, not transparent, and does not have local buy-in, it should not move forward,” Letlow said.

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Fleming, who is MAGA-aligned, said his campaign relied on “grassroots support” and was endorsed by eight parish-level Republican committees and four regional assemblies.

“It’s been a tough year-and-a-half campaigning, but I asked for this,” Fleming said in his concession speech. “I felt that the Lord led me this way. It didn’t turn out as we had hoped, but that’s OK.

“This is a very healthy process, what we have in Democracy, where we battle it out, tough it out and hopefully we get the best.”

Letlow’s platform

Letlow’s political career began in 2020 after her husband, Luke, who had just been elected to the U.S. House, died from complications from COVID-19.

She ran for his seat in a special election, won and later used her platform to encourage people to get vaccinated against the infectious disease.

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Letlow, a mother of two who worked in higher education administration before entering politics, has become an increasingly vocal supporter of Trump and of Health Secretary Robert F. Kennedy, a vaccine skeptic.

Her campaign received more than $1 million from the MAHA PAC, a political group affiliated with Kennedy.

Letlow said her proudest legislative accomplishment is a Parents’ Bill of Rights she passed in the House in 2023, which stalled in the Senate.

“The bill gives parents greater transparency into curriculum, school budgets, and what is happening in their children’s classrooms,” Letlow said. “It puts families back in charge and protects children from political agendas that don’t belong in schools.”

She said her top three priorities, if elected to the U.S. Senate, will be border security and public safety, growing Louisiana’s economy and education, including school choice and parents’ rights.

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Davis’ platform

Davis, a former Tensas Parish Police Juror, is running on a platform of affordability, healthcare, opportunity and upholding voting rights.

He said he took it personally when Gov. Jeff Landry canceled the congressional race where mail-in ballots had already been cast. The Democratic candidate also attended legislative committee hearings to oppose the 5-1 Republican-favored congressional voting map that the legislature eventually passed and the governor signed into law for use in the November election.

“A national ban on gerrymandering is one of the top things for me, because we need to get past this power grab that’s happening all over the nation. It needs to end so that America can just focus on the issues and not power grabs,” said Davis.

The third-generation farmer said he’ll work toward a new Farm Bill with crop insurance reform.

“So  farmers can just have the opportunity to grow a crop, be able to sell it on an open market for a fair price and be able to make an honest living,” said Davis.

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The 55-year-old grandfather said he’ll defend Medicaid, strengthen rural hospitals at risk of closing, focus on lowering prescription drug costs and protect Social Security and Medicare and the subsidies that keep premiums affordable.

He also supports a woman’s right to choose when it comes to abortion.

On immigration, Davis said he’s in favor of securing the border but also wants to give immigrants a simple path to citizenship.

Davis has the endorsements of the Louisiana Democratic Party, Congressman Troy Carter, New Orleans Mayor Helena Moreno, former opponent Nick Albares and Indivisible groups across the state.

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