A state agency has confirmed that intricate regulatory hurdles still confront the Jordan Cove natural gas export proposal on the Oregon coast that would export Canadian production.

The Oregon Department of Environmental Quality (DEQ) announced a decision to deny the proposed liquefied natural gas (LNG) project’s application for a water quality certificate and said approval may only be granted if a new application assures full compliance with state construction standards.

Jordan Cove LNG must obtain a state water quality certificate to qualify for project construction approval by the U.S. Army Corps of Engineers, DEQ noted.

Project sponsor Pembina Pipeline Corp. has been braced for setbacks following a six-year marathon of efforts to steer a course to approval through opposition before state and federal regulatory agencies and in the courts.

The Calgary firm said in its 1Q2019 results that the project has been delayed for up to a year because of the slow approval processes. Construction spending was suspended on the estimated $10 billion plan to export up to 1 Bcf/d.

Pembina has set a C$50-million ($37.5 million) budget for completing the regulatory ordeal.