Looking to bring an additional source of natural gas to Oregon, Energy Projects Development LLC (EPD) of Evergreen, CO is working to site a liquefied natural gas receiving terminal and storage facility near an existing wood chip dock at Jordan Cove on the industrial bay side of the North Split of Coos Bay, OR.

The estimated $150 million Jordan Cove Energy Project would also include a small natural gas-fired power plant that will run the facility, with excess power going for resale. On its current timetable, commercial operation for both parts of the project is scheduled for the end of 2008.

Assuming current negotiations to purchase a 90-acre parcel of land go through, and the company is able to attain all of the necessary permits, EPD said the project would be the smallest LNG import terminal existing or proposed in the United States. Because the Port of Coos Bay currently accepts larger bulk freighters that load wood chips, no additional dredging of the bay would be necessary to accommodate LNG vessels.

Under the operation plan, LNG would be delivered to approximately twice per month by an LNG vessel, which would be about one-half the size of vessels delivering LNG to other U.S. ports (70,000 to 80,000 cubic meters).

The LNG will be off-loaded into the storage tank, from which, then vaporized into gas and delivered into the new pipeline currently being constructed across lower Coos Bay. From there, most of the gas will be delivered into the new Coos County natural gas pipeline for use in markets within Coos County and southwest Oregon, while the remainder of the gas will be used onsite or to supply fuel to new markets that may develop on the North Spit.

EPD said the Jordan Cove facility will have the “safest”LNG storage tank in the United States, noting that current and proposed LNG import facilities in the U.S. have two or more tanks, while their project will have just one 95,000 cubic meter tank, which would be approximately one-half the size of tanks located in most existing and proposed U.S. LNG import terminals. In addition, the company said the power facility will be the “most efficient and environmentally benign” natural gas-fueled power plant in the state. “Any noise generated from the facility will be inaudible beyond the property boundaries,” the company said.

While not overlooking the potential opposition to the project, EPD said that the residents of Coos County took an “important step” toward improving the climate for new and existing industry when they voted in 2000 for the construction of a new natural gas pipeline in the county. The company stressed that the project will provide Coos County with a source of reliable, moderately-priced natural gas, which will enhance the area’s attractiveness to businesses that use natural gas. Upon completion, the facility is expected to employ up to 50 people.

While the size of the proposed project is sufficient to meet the current and anticipated natural gas needs of Coos County, southern Oregon and any new or expanding businesses on the North Spit, the company reported that the prospective property includes enough acreage for expansion in the future.

EPD is a team of independent professionals who have backgrounds in various energy fields. Within the specific area of natural gas and LNG, the team members have been involved in the areas of exploration, production, processing and pipelining and have developed, constructed and operated natural gas power plants, petrochemical plants, hydrogen plants and many other gas-based facilities. Some of the members are currently providing management oversight for a major LNG export facility proposed for northern Russia as well as consultation on other LNG projects.

The company said it is currently self-financing the Jordan Cove Energy Project’s development efforts. The tentative timetable for planning and construction includes:

Once progress has been made on the plant’s siting, EPD said additional industrial partners will be added. “Discussions are currently underway to secure the long term LNG supply commitment for the project and we anticipate obtaining a supply commitment by Oct. 2004,” the company said. “Concurrent with these activities, work will continue to progress on engineering and siting tasks at the Jordan Cove Energy Project.”

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