Veresen, Itochu in Jordan Cove LNG deal

Calgary-based Veresen on Friday informed it has reached an agreement on key commercial terms with Itochu Corporation for long-term liquefaction capacity at Jordan Cove LNG terminal in Port of Coos Bay in Oregon, USA.

Under the preliminary agreement, Itochu Corporation of Japan would buy 1.5 mtpa of natural gas liquefaction capacity at the Jordan Cove LNG terminal for a period of 20 years, Veresen revealed in a statement.

Both companies will continue working on a definitive tolling agreement Veresen said.

With the preliminary agreement recently reached with Japan’s Jera, Veresen concluded preliminary deals for 3 mtpa of Jordan Cove LNG terminal’s liquefaction capacity.

Negotiations for the remaining capacity at the terminal, that has recently been denied its application by FERC due to the lack of such agreements, continue.

Veresen said it will file for rehearing of FERC’s decision on the proposed Jordan Cove LNG terminal.

The project is expected to have an initial design liquefaction capacity of approximately 6.0 million tonnes per annum, or approximately 1 billion cubic feet of natural gas per day.

[mappress mapid=”16464″]

LNG World News Staff