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Colo. governor asks FERC to reconsider Jordan Cove LNG export project

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Colo. governor asks FERC to reconsider Jordan Cove LNG export project

TheGovernor of Colorado has thrown his weight behind an Oregon LNG exportterminal, asking FERC to reconsider its earlier rejection of the project andrelated pipeline.

"TheJordan Cove and Pacific Connector Pipeline Project represents an important newsource of demand for natural gas producers in Colorado," Gov. JohnHickenlooper wrote in an April 11 letter to the commission. "It isimportant for shippers and domestic natural gas producers to continue to accessmarkets for natural gas including the Asian Pacific countries which comprisethe fastest growing liquefied natural gas market in the world."

Hickenlooperadded that Veresen Inc.'sJordan Cove project is "the only LNG facility on the West Coast that woulddirectly link Colorado to new energy markets via the [] pipeline."

FERC on March 11 denied Jordan CoveEnergy Project LP and PacificConnector Gas Pipeline LP project's requests for certificateauthority for construction and operation, finding that the "generalizedallegations of need proffered by Pacific Connector do not outweigh thepotential for adverse impact on landowners and communities." Further, thecommission concluded that authorization for Jordan Cove LNG would beinconsistent with the public interest because "without a source of naturalgas … it will be impossible for Jordan Cove's liquefaction facility tofunction."

JordanCove and Pacific Connector fileda request for rehearing with FERC on April 11 after entering into severalagreements that they said demonstrate commercial support for the development.

"Veresenrecently announced that it has finalized the key commercial terms for thepurchase of at least 3 million tonnes per annum of natural gas liquefactioncapacity, representing at least 50% of the project's initial design capacity,"according to an April 11 statement. "In addition, Pacific Connectorrecently executed natural gas transportation service precedent agreements withMacquarie Energy LLC,Avista Corp. and[Jordan Cove], which in aggregate represent in excess of 75% of the ratedcapacity of the pipeline."

FERChas 30 days to grant or deny the request. If FERC denies Jordan Cove's requestfor rehearing, the project can appeal that decision in the U.S. Court ofAppeals within 60 days of the commission's order.

PacificConnector is equally owned by a subsidiary of Veresen and a subsidiary ofWilliams Partners LP.