Veresen agrees first Jordan Cove LNG deal with Jera
Veresen said it has finalized commercial terms with Jera for liquefaction capacity at Jordan Cove LNG terminal that has recently been denied its application by FERC.
Under the preliminary agreement, Jera, a joint venture between two Japanese utilities, Tepco and Chubu Electric, agreed to book at least 1.5 mtpa liquefaction capacity at the Jordan Cove terminal for a period of 20 years, Veresen said in a statement on Tuesday.
The proposed LNG liquefaction and export facility would have an initial design capacity of 6 mtpa, or approximately 1 billion cubic feet of natural gas per day.
The two companies will further work towards the conclusion of a detailed liquefaction tolling agreement, Veresen said, adding that the discussions for the remaining liquefaction capacity are ongoing with other parties.
The lack of such an agreement was the reason Federal Energy Regulatory Commission denied Jordan Cove LNG the permit to construct the terminal on the North Spit of Coos Bay in Coos County in Oregon.
FERC denied the application for the construction of the Pacific Connector gas pipeline that would deliver up to 1.06 bcf/d of natural gas from interconnects with Ruby Pipeline and Gas Transmission Northwest near Malin, Oregon, to the Jordan Cove LNG terminal.
FERC said that no open season to market the capacity pipeline has been held and that no deals were signed for the project. The commission added that without a pipeline the Jordan Cove LNG terminal would provide no benefit to the public.
Both Jordan Cove LNG and Pacific Connector are units of Veresen that said in its response to FERC decision if will file for a rehearing.
The agreement with Jera signals the market support for the Jordan Cove LNG project, according to Don Althoff, president and CEO of Veresen, which could get FERC to change its decision.
Althoff noted that the deal with Jera marks a step forward in the project’s development.
LNG World News Staff