Claiming that action by FERC is long overdue and threatening their project’s viability, Jordan Cove Energy Project LP (JCEP) and Pacific Connector Gas Pipeline LP (PCGP) have called on FERC to approve their requests for certificates to build a liquefied natural gas (LNG) import terminal and associated pipeline facilities to serve the Pacific Northwest and portions of California and Nevada.

The Federal Energy Regulatory Commission issued a favorable final environmental impact statement (FEIS) on the LNG terminal and pipeline project in May, concluding that while the construction “would result in some adverse impacts…most of these impacts would be reduced to less-than-significant levels” by the mitigation measures proposed by the companies and FERC (see Daily GPI, May 4). Typically FERC awards a project certificate only weeks after issuing an FEIS, but JCEP and PCGP still are waiting.

“Four months have lapsed since the issuance of the FEIS and [it’s] over one month since the 90-day federal authorization decision deadline of July 30, and the project continues to await issuance of an order,” JCEP and PCGP wrote in a letter Friday to FERC Chairman Jon Wellinghoff.

“The absence of a decision by the Commission is creating a competitive disadvantage in the market place for JCEP and PCGP. The project is in direct competition with other proposed LNG terminals in the vicinity and the lack of a certificate order is slowing the development of the project.

“Absent Commission approval, JCEP and PCGP are concerned that local, state and federal agencies would be less willing to work through the permitting process for this project. This is problematic for Jordan Cove’s pursuit and finalization of reliable long-term LNG suppliers. Additionally, continued regulatory delays may result in supplies being dedicated to other LNG import terminals outside of North America.”

The $500 million Jordan Cove project has been the target of considerable opposition in Oregon (see Daily GPI, Jan. 4, 2008). Assuming it receives FERC approval, the company hopes to complete the 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 previously it had 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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