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Oregon LNG Backers Buy Jordan Cove Plant Site

Even with their plans stalled for importing liquefied natural gas (LNG) along the Pacific Northwest coast, the backers of the limited partnership behind the Jordan Cove LNG project at Coos Bay, OR, said Wednesday they have purchased the project's 200-acre Ingram Yard site from Weyerhaeuser NR Co., which carries with it an option to acquire an additional 120 acres for the eventual development of a gas-fired electric generation plant.

Project Manager Bob Braddock, who is vice president of an affiliate of Alberta-based Fort Chicago Energy Partners LP and Energy Projects Development LLC, would not divulge the purchase price or who will be paid for the option on the additional land. Last month Braddock confirmed that Jordan Cove was still an active project, and that its backers were exploring the possibility of a "dual-use" facility that would have both LNG import and export capabilities (see Daily GPI, Aug. 26).

Braddock said the land purchase closed Aug. 15 and includes enough acreage to allow "access and berthing of LNG carriers."

Elliot Trepper, president of the Jordan Cove project, called the land purchase a "logical next step in advancing the development of the Jordan Cove LNG terminal and further demonstrates our commitment to bring the project to a successful conclusion."

The option for the additional land also involves acreage that would be located on what is called the North Spit of Coos Bay where Weyerhaeuser closed a linerboard paper mill in 2003 and removed all of its remnants in 2006.

"The mill site is being considered as the location for the South Dunes Power Plant, a combined-cycle natural gas-fired generation facility," Braddock said. It would serve both regional power needs and the needs of the LNG facilities, he said.

A subsidiary of the Jordan Cove backers would build and operate the power plant, Braddock said. He noted that it has always been the project's intent to own the land designated for its LNG site, but until last month the project only had a purchase option.

Jordan Cove has conditional approval from the Federal Energy Regulatory Commission (FERC) for its terminal, as does the affiliated proposed Pacific Connector pipeline, which would be needed for any LNG import or export project. The backers would have to go back to FERC to get the go-ahead for an export facility. Fort Chicago and units of PG&E Corp. and Williams are partnering on the Pacific Connector project.

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