Veresen units seek FERC to act fast on Jordan Cove LNG
Jordan Cove Energy Project and Pacific Connector Gas Pipeline, both units of Calgary-based Veresen, filed a request with FERC to expedite its decision on rehearing of the order denying the construction of LNG project in Coos Bay, Oregon.
FERC initially denied the permit to two Veresen units to construct, own and operate the LNG facility and an associated 232-mile pipeline in March.
However, as stated in the newly filed request, JCEP and CGP have filed a request for rehearing in April submitting precedent agreements for 77 percent of the pipeline capacity with three shippers that have been executed between March 11 and the request for rehearing.
The rehearing for further consideration has been granted in May, however, it has been pending for over six months now, the two companies said.
During this period Jordan Cove Energy Project continued to negotiate LNG tolling services with potential customers. Deals with Jera and Itochu still remain in place, however, in their letters submitted to the Commission, both companies stress that the advancement on their respective contracts depends on the regulatory status of the project.
According to the request for expedited action, several other negotiations broke down following the initial denial of the project.
Commission’s delay has also put the acquisition of right of way for the pipeline in danger. PCGP has so far secured agreements with one-third of owners of the land on which the pipeline right of way would be located. However, further discussions with landowners have been put on hold pending an order from the commission.
In addition, a number of local, state and federal agencies have agreed to continue processing applications for respective authorizations the project requires but the commission’s delay puts these proceedings in danger of being dismissed if the decision on rehearing request is not been made by January 2017.
The proposed project is expected to have an initial design liquefaction capacity of approximately 6.0 million tons per annum or approximately 1 billion cubic feet of natural gas per day.