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Jordan Cove LNG Project, Pipe Get Environmental Nod

FERC Friday issued a favorable final environmental review of Jordan Cove Energy Project LP's proposal to build a liquefied natural gas (LNG) import terminal and associated pipeline facilities to serve the Pacific Northwest, northern California and northern Nevada.

"We conclude that construction and operation of [the Jordan Cove terminal and pipeline project] would result in some adverse impacts. However most of these impacts would be reduced to less-than-significant levels with the implementation of the applicants' proposed mitigation measures and the additional measures we recommend" in the final environmental impact statement (FEIS), concluded the staff of the Federal Energy Regulatory Commission and several cooperating agencies [CP07-444, CP07-441].

The cooperating agencies included the U.S. Forest Service, U.S. Army Corps of Engineers, Environmental Protection Agency, U.S. Coast Guard, Department of Transportation and Interior Department's Bureau of Land Management, Bureau of Reclamation and Fish and Wildlife Service, as well as Douglas County, OR.

The Jordan Cove project, which has been the target of considerable opposition in Oregon, is now one step away from receiving a certificate (see Daily GPI, Jan. 4, 2008). A certificate typically is issued within weeks of the FEIS. The company hopes to complete the $500 million project by either late 2012 or early 2013 to secure reliable long-term supplies of LNG.

Jordan Cove, a limited partnership of an affiliate of Alberta-based Fort Chicago Energy Partners LP and Energy Projects Development LLC, proposes to build the terminal at the International Port of Coos Bay, OR. The project calls for the construction of a marine berth; two storage tankers with a combined 6.4 Bcf of capacity; regasification and sendout capacity of 1 Bcf/d; an electric power plant; and a natural gas liquids extraction facility to recover propane and butane (see Daily GPI, Sept. 6, 2007).

Pacific Connector proposes to build a 234-mile, 36-inch diameter pipeline to transport up to 1 Bcf/d from the terminal to markets in the region. The pipeline would interconnect with Williams' Northwest Pipeline near Myrtle Creek, OR; Avista Corp.'s distribution system near Shady Cove, OR; and Pacific Gas and Electric Co.'s transmission system, Tuscarora Gas Transmission's system and Gas Transmission Northwest's system, all located near Malin, OR.

Pacific Connector said it has entered into agreements with seven customers for the full capacity of the pipeline. The proposed pipeline is a limited partnership of Williams Pacific Connector Gas Pipeline LLC, PG&E Strategic Capital Inc. and an affiliate of Fort Chicago Energy Partners, Fort Chicago LNG II US LP.

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