An LNG export terminal is most likely not in North Carolina’s future, according to a report prepared by the North Carolina Department of Commerce’s Labor and Economic Analysis Division. The report was commissioned to consider the potential costs and benefits of such a project in the state. While the benefits were there—3,000 or more temporary construction jobs and 75 or more permanent jobs in the state—significant obstacles would hinder any LNG export plans.

The primary hindrance to an LNG export project in North Carolina is the time needed to complete the necessary regulatory processes and construction, the report found.

“On the regulatory side, permission to export LNG must be granted by the U.S. Department of Energy, while permitting and approval of the facilities occurs through a process led by the Federal Energy Regulatory Commission (FERC),” the report said. “Following a lengthy review process, construction of liquefaction facilities, storage facilities and associated pipelines can begin.”

This already extensive process is compounded by the fact that “the line to convert or build new terminals is already long,” the report said. While one LNG export terminal is currently operating, only four others have received approval to construct export facilities since 2011. Meanwhile, as of Dec. 3, 2014, there were 16 proposed LNG terminal applications awaiting approval, with an additional 12 potential sites identified by project sponsors. The report also noted that those projects that received approval had something else in common: They had all previously been LNG import facilities with much of the necessary infrastructure already in place. With no LNG import facilities already in place in North Carolina, the state is at a competitive disadvantage in seeking regulatory approval.

The report also found that a huge infrastructure investment would be necessary to support an LNG export project in the state. The Gulf Coast has the greatest concentration of natural gas pipelines of any region in the country, which is an enormous advantage for the many planned projects in that region. North Carolina, though, has only one interstate natural gas pipeline through the state in the Transco Pipeline, which crosses western North Carolina. The intrastate pipelines there are also very limited. Construction of gas pipelines across the state would be a requirement to support an LNG export project, and would require a further investment of time and money and further regulatory approvals. The Atlantic Coast Pipeline has been proposed for the state, but its transportation capacity is already fully subscribed, the report said.

The report acknowledged that, in addition to the thousands of temporary construction jobs and several permanent jobs an LNG export project would create, the state would also benefit from the tax revenue it would receive from any company running a facility in North Carolina. Local government would receive property taxes from the facility, while the state government would receive both corporate and individual income taxes. Costs to the state itself would be minimal, mainly including any publicly owned land granted to private companies for the facility, while the new revenue and jobs would be a boon to the state. However, it’s unlikely a potential operator would decide to confront the challenges there while other locations are more convenient.