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FERC gives itself extra time to reconsider Jordan Cove LNG denial


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FERC gives itself extra time to reconsider Jordan Cove LNG denial

TheOregon natural gas liquefaction project rejected by FERC could still get a second chance to bethe West Coast's first operational LNG export terminal.

Thecommission May 9 issued a tolling order to give it more time to considerJordan Cove Energy ProjectLP and PacificConnector Gas Pipeline LP's April for rehearing of FERC's Marchorder. FERC in March denied their application to construct and operate the LNGexport terminal and a pipeline to supply it.

Inthe rehearing request, VeresenInc.'s Jordan Cove and Pacific Connector noted that they haveseveral agreements with customers demonstrating commercial support for thedevelopment, including preliminary off-take deals with JERA Co. Inc. andITOCHU Corp. The LNGterminal has 3 million tonnes per annum of potentially contracted capacity.

"JERAis the largest LNG buyer in the world. [It] definitely serves as a kind of sealof approval," Jordan Cove LNG President and CEO Elizabeth Spomer saidduring a May 5 earnings conference call. "So we see strong commercialsupport for the project continuing."

PacificConnector also concluded deals after FERC's rejection."Perhaps more importantly for our application to FERC, we entered intobinding transportation service precedent agreements for the Pacific Connectorrepresenting more than 75% of the pipeline's capacity," Veresen CEO DonaldAlthoff said during the call.

FERC'sdenial of certificate authority for Jordan Cove LNG and Pacific Connector foundthat the "generalized allegations of need proffered by Pacific Connectordo not outweigh the potential for adverse impact on landowners andcommunities." The commission then concluded that authorization for JordanCove LNG would be inconsistent with the public interest because "without asource of natural gas … it will be impossible for Jordan Cove's liquefactionfacility to function." (CP13-483, CP13-492)

PacificConnector is owned by a subsidiary of Veresen and a subsidiary of .