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Jordan Cove LNG Project Plans to Re-Apply at FERC

Within a week of being denied a rehearing, the Canadian-based backers of a liquefied natural gas (LNG) export project on the south-central coast of Oregon said they will re-apply at FERC for the $7.5 billion export facility and connecting gas pipeline project that bids to be the first U.S. West Coast LNG export facility.

Jordan Cove officials said Wednesday that their project engineers finalized an optimized, more efficient project design, and they intend to file a new application with the Federal Energy Regulatory Commission. “While the decision [Dec. 9] was disappointing, we remain committed to this project,” said Betsy Spomer, CEO of Jordan Cove LNG, a unit of Calgary-based Veresen Inc.

FERC rejected a request for rehearing of the Jordan Cove project a week ago, following the Commission's initial rejection last March.

Spomer said the 2015 final environmental impact statement (FEIS) remains "valid" and confirms that the project is environmentally responsible.

Citing some improvements in design, Spomer said that through feedback from stakeholders and extensive engineering work, "we have designed a more efficient facility that does not require a power plant and will reduce overall environmental impacts.”

Last Tuesday, Jordan Cove LNG withdrew its application with Oregon’s Energy Facility Siting Council to build a 420 MW power plant, resulting in a facility that Spomer said can be "more efficiently and effectively" operated with a smaller infrastructure footprint.

West Slope Colorado producers through their association applauded the Jordan Cove decision, calling the proposed export project through which they intend to sell gas supplies "the most important energy infrastructure project in the western United States."

Citing President-elect Donald Trump's first meeting with a head of state being Japanese Prime Minister Shinzo Abe, David Ludlam, executive director of the West Slope chapter of the Colorado Oil/Gas Association (COGA), said the new FERC application "can reverse the geopolitical slight to Japan and restore our credibility by ensuring this time around Jordan Cove receives fast and fair consideration."

Similarly, Oregon state Sen. Arnie Roblan cited the jobs-creating benefits of the project, noting that Jordan Cove’s investment could "rank among the largest private investments in Oregon’s history," generating hundreds of millions in tax revenues.

Jordan Cove officials said "important agreements stay in place, including commitments to provide clean natural gas to southern Oregon homes and businesses through the local pipeline network," as the project sponsors assemble their new FERC applications.

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