At least one of the two still-active proposed liquefied natural gas (LNG) receiving terminal projects in Oregon is exploring the possibility of changing its plans to include an export facility. The backers of Jordan Cove LNG at Coos Bay, OR, also recently purchased a 200-acre site at its designated location along the state’s south-central Pacific Coast.

In the wake of another announcement of a U.S. LNG project being abandoned — Creole Trail in Louisiana (see Daily GPI, Aug. 24) — NGI asked both Jordan Cove and Oregon LNG project managers if they were considering giving up on their respective projects. It drew an emphatic “no” from Bob Braddock, vice president and project manager for Jordan Cove, which holds a conditional federal permit to pursue an import terminal.

“We’re exploring the prospect of establishing [Jordan Cove] as a dual-use facility with what appears to be immediate interest in its use as an export facility,” said Braddock, going farther in discussing the option than he did when the issue was raised in June (see Daily GPI, June 24).

Geared for a 1 Bcf/d import terminal capacity connected to the proposed 1.2 Bcf/d Pacific Connector Pipeline, Jordan Cove is a limited partnership of an affiliate of Alberta-based Fort Chicago Energy Partners LP and Energy Projects Development LLC, proposing to build the terminal at Coos Bay’s international port. Fort Chicago and units of PG&E Corp. and The Williams Cos. are partnering on the Pacific Connector project.

Jordan Cove has conditional approval from the Federal Energy Regulatory Commission (FERC) for its terminal, as does the affiliated Pacific Connector pipeline, which would be needed for any LNG export project. The backers would have to go back to FERC to get the go-ahead for an export facility, but Braddock told NGI Wednesday there are no current moves to file for a revised import-export project with FERC.

“The pipeline would be looked at as bidirectional, given we add an export component,” said Braddock, noting there is no timeline yet for the dual terminal concept. “We’re not preparing any filings for FERC at this point.”

The project manager for Oregon LNG’s proposed terminal at the mouth of the Columbia River near Astoria, OR, did not readily respond to a similar inquiry from NGI. In recent months, Peter Hansen had indicated that work has been continuing toward a FERC permit on the project at Warrenton, OR.

Braddock said Jordan Cove’s backers are currently “canvassing the market” regarding interest in an export facility. “We’re trying to make sure there is interest, and in fact, we’re trying to assure ourselves there are customers interested in using the facility before we dive into it completely.

“Our interests have always been in being infrastructure owners and operators, and we would only build the infrastructure if we had contracts for its use. In this instance, those contracts could be purchasers of LNG or suppliers of gas to be liquefied. It could be either way, and we have talked to both sides of the equation.” He said there are both some new potential customers and a number of the ones Jordan Cove has been pursuing for the import facility.

Braddock said the Jordan Cove backers are not concerned with the current depressed economy. “In looking at exports we’re dealing with folks who want gas and want to use it some place outside of North America in the future, so they’re looking at circumstances that will exist in another six years.”

What the added element of an export component does to the timing and overall cost of Jordan Cove is unknown at this point, said Braddock, noting that the project is still moving ahead with gaining all its state and local permits for the import terminal and pipeline project. “We’re moving forward on the main packages, and we’ll continue to do that,” Braddock said. “The bulk of the work remains the same [for both import and export components].”

Noting that most of the sources Jordan Cove has dealt with in pursuing its project are “indifferent” as to whether it is an import or export facility, Braddock said he is still pursuing a facility as evidenced by the Aug. 15 purchase of the land for the Coos Bay site. “So we are making financial commitments to move forward one way or the other, even if it is at a slow pace because there is lack of clarity as to what the market wants.”

Jordan Cove’s backers purchased the land from Weyerhaeuser Co. and has an option on an additional 105 acres.

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