trending Market Intelligence /marketintelligence/en/news-insights/trending/7cGV_moPx0fZb6Y84yp-nQ2 content esgSubNav
In This List

Potential customer JERA vouches for Jordan Cove LNG export project

Blog

European Energy Insights - May 2021

Blog

Metals & Mining Insights May 2021

Blog

[Report]: 2021 Corporate Renewables Outlook

Blog

Corporate Credit Risk Trends in Developing Markets An Expected Credit Loss ECL Perspective


Potential customer JERA vouches for Jordan Cove LNG export project

Japan's JERA Co. Inc. asked FERC to take a newlook at Veresen Inc.'sJordan Cove LNG project after the agency decided not to authorize the proposedexport facility and a related pipeline.

In an Oct. 5 request for rehearing, JERA President Yuji Kakimisaid the company is working on a long-term tolling agreement for liquefactioncapacity at the facility in Coos Bay, Ore., but government approval would be acrucial step to allow the contracts to move forward.

"With its proximity to Japan and its access to large naturalgas reserves, the Jordan Cove Energy Project is well placed to make a positivecontribution to enhancing the energy security for Japan over the long term,"the letter said.

In the FERC decision to denycertificates for the export terminal and the related inMarch, the commission pointed to a lack of commercial support and impactson surrounding communities that outweighed the project'sbenefits. (CP13-483, CP13-492)

At an industry conference on Oct. 3, CEOElizabeth Spomer toldattendees that the project did not have time to prove it was commerciallyviable because confidentiality restrictions kept Veresen from disclosingpending contracts with JERA and ITOCHUCorp.

Jordan Cove would have a production capacity of between 6 millionand 7 million tonnes per annum of LNG. Shortly after FERC'srejection, Veresen announced it had reached agreements for at least halfof Jordan Cove's design capacity and binding agreements on Pacific Connectorfor more than 75% of its capacity.

JERA is a joint venture between Tokyo Electric Power Company Holdings Inc.'s TEPCO Fuel& Power Inc. and ChubuElectric Power Co. Inc. with headquarters in Tokyo.