Westlake approves resolution to join La. Municipal Gas Authority

The Westlake City Council unanimously approved a resolution for the city to join the Louisiana Municipal Gas Authority (LMGA) at Monday’s meeting.

LMGA is a conglomerate group created by the state legislature in 1987. It consists of over 70 public entities that own and operate a gas distribution system.

Westlake City Clerk Andrea Mahfouz told the American Press the city used to be a member of LMGA. The authority is where they purchased natural gas from. Just over 15 years ago, the city tried to begin the process of selling gas to local industries, but there were not enough resources.

“At the time, their supplier was not able to guarantee that they could provide that much natural gas.”

“The main thing with the Louisiana Gas Authority is the amount of gas that you have to have on hand … A small city like ourselves, we couldn’t put up that kind of money,” Mayor Hal McMillin told the American Press. “There’s strength in numbers. … in order to have the amount of gas reserves that local industries would need, we’re able to have that by joining the Louisiana Municipal Gas Authority.”

The city left LMGA at the time and began purchasing from Conoco, Mahfouz said. With the reinstated membership, Westlake’s gas will still be provided by Conoco, but the bill will be sent to LGMA, which will act as a liaison. The city will pay LMGA, and the authority will begin the process of setting up contracts with neighboring industrial complexes that will allow industry to purchase gas from the city.

“That allows them to go and do that legwork now to get those industrial customers that we’re looking for,” she said. “It’s a win for the city. It’s a win for the industries because it gets them the price cut, the cheap gas, and then in turn allows us to eventually, hopefully, reduce our gas costs to our regular residential and commercial just by having funds come in that are allowed to spread that over everybody.”

He said the step forward will provide the city with a new revenue source that will “pass savings along to constituents.” The city will utilize LMGA to create gas sale contracts with local industries to bring the city a “windfall of money.”

“As the City of Westlake joins the LMGA, we’re going to do everything to keep our gas rates as low as possible, and this is a good move toward doing that.

“I think last night was a major move toward a very good opportunity for the city and our constituents.”

He said while it will take a couple of years for the city to see revenue, industrial contracts could funnel potential millions into Westlake.

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