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Ore. labor leader urges FERC to approve Jordan Cove LNG, pipeline

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Ore. labor leader urges FERC to approve Jordan Cove LNG, pipeline

An Oregonlabor leader asked FERC to approve VeresenInc.'s proposed Jordan Cove LNG liquefaction and export project andthe Pacific Connector Gas Pipelinein light of the company's off-take agreementwith Japan's JERA Co. Inc.

In theApril 4 letter to FERC staff, state AFL-CIO President Tom Chamberlain noted thatthe deal for at least 1.5 million tonnes per annum of LNG from the Jordan Cove project— about a quarter of the terminal's 0.9-Bcf/d capacity — represents a commitmentto the local economy. Jordan Cove and the Pacific Connector will "create 3,500new family-wage construction jobs" and "hundreds of permanent jobs,"Chamberlain wrote. Jordan Cove LNG, he added, will pay roughly $500 million duringoperations into a community enhancement plan to "support education, publicsafety, waterfront development, taxing districts and more."

"Iurge FERC to approve Jordan Cove and Pacific Connector so that Oregon may take advantageof this immense $7.5 billion private investment in our state," Chamberlainwrote.

FERCon March 11 denied requestsfor certificate authority to build and operate Jordan Cove LNG and the Pacific Connector.Finding that the "generalized allegations of need proffered by Pacific Connectordo not outweigh the potential for adverse impact on landowners and communities,"the commission also concluded that authorization of the LNG facility would be inconsistentwith the public interest because "without a source of natural gas … it willbe impossible for Jordan Cove's liquefaction facility to function."

Veresenand Jordan Cove Energy Project LPcan present the JERA deal to FERC as evidence of an economic need for the LNG facilityin a request for rehearing or a new application.

But whetherthat is enough to appease the commission in either scenario depends on what elsethe project can achieve before the deadline for request for rehearing, which isApril 11, or before it submits a new application. Analysts agreed that the March 22 announcement will "not likely"change FERC's mind, particularly because it is only a preliminary deal and is subjectto the execution of a detailed liquefaction tolling agreement.

DespiteFERC's initial rejection, Veresen President and CEO Donald Althoff said the agreementwith JERA, a joint venture between TokyoElectric Power Co. Inc. and ChubuElectric Power Co. Inc., "represents a significant step forward"for Jordan Cove LNG, which according to the company's March 22 statement is stillin negotiations with other parties for the remaining liquefaction capacity.

JordanCove LNG spokesman Michael Hinrichs said the project plans to appeal FERC's decisionbefore April 11, the Klamath Falls, Ore., Heraldand News reported March 24. (CP13-483, CP13-492)