By April 11, 2016 0 Comments Read More →

Veresen requests FERC rehearing after denial of Jordan Cove LNG terminal

Veresen has signed deals for 50 per cent of project’s output

Veresen

Veresen is asking the U.S. Federal Energy Regulatory Commission to reconsider its opposition to the company’s Jordan Cove LNG project.  

CALGARY _ Veresen Inc. has submitted a request to the U.S. Federal Energy Regulatory Commission for an opportunity for a rehearing on the company’s Jordan Cove LNG project proposal.

Last month, the Calgary-based company learned the FERC had denied its application for authorization to construct and build the the terminal and an associated pipeline to Oregon’s coast at the port of Coos Bay.

One of the reasons cited for denying the company’s request was a lack of signed sales contracts.

On Friday, the Veresen announced it had finalized terms for the purchase of at least 50 per cent of the project’s estimated capacity.  As well, Pacific Connector recently penned natural gas transportation service precedent agreements with Macquarie Energy LLC, Avista Corporation and JCEP.  JCEP is a wholly-owned subsidiary of Veresen and Pacific Connector is owned equally by a subsidiary of Veresen and a subsidiary of Williams Partners L.P.

In total, the deals represent over 75 per cent of the rated capacity of the pipeline.

In the request for rehearing, JCEP and Pacific Connector request that FERC consider the agreements with customers of the LNG terminal and shippers on Pacific Connector as evidence of market support for the projects.

The companies argue the public benefits of the projects outweigh the potential adverse impacts on landowners.

“Jordan Cove LNG and Pacific Connector Gas Pipeline will bring significant and lasting benefits to Coos County, as well as communities all along the pipeline route,” said Don Althoff, President and CEO of Veresen. “We continue to see an outpouring of support from project proponents at each of the local, state and national levels. I thank our supporters for their continued confidence in the projects.”

The U.S. Federal Energy Regulatory Commission has 30 days to grant or deny the request for rehearing. FERC may grant rehearing, deny rehearing or grant rehearing solely for purposes of extending the 30 day deadline, followed by an order on the merits at a later date.

Veresen says the Jordan Cove LNG project is expected to have a liquefaction capacity of approximately 6.0 million tonnes per year, or approximately 1 billion cubic feet of natural gas per day.

 

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