Southern Oregon’s Jordan Cove Update

The $7.5 billion Jordan Cove LNG facility in Coos Bay, OR hit a setback on March 11, 2016 when the Federal Energy Regulatory Commission (“FERC”) denied the applications of Jordan Cove LNG and Pacific Connector Gas Pipeline (“Pacific Connector”). Specifically, the FERC stated that the public benefits of Pacific Connector do not outweigh the potential for adverse impacts on landowners and communities. Simply stated, there would be no financial gain because at the time of the hearing there were no buyers for the LNG.

Veresen, Inc.; the project owner/ developer, has the opportunity to appeal the FERC decision and plans to do so after the recent announcement on March 22nd that it has finalized the key commercial terms with JERA Co., Inc. (“JERA”) in respect of the long-term provision to JERA of natural gas liquefaction capacity at the Jordan Cove LNG facility. The preliminary agreement covers the purchase by JERA of at least 1.5 million tonnes per annum of natural gas liquefaction capacity for an initial term of 20 years. This agreement is subject to customary conditions including the execution of a detailed liquefaction tolling agreement, which Veresen and JERA will continue to work together to conclude, and the project obtaining applicable regulatory approvals. Negotiations for the remaining liquefaction capacity are ongoing with other parties.

With a $7.5 billion project on the Southern Oregon coast, we expect many travelers during construction. Please take a moment to complete this one question survey so we can better understand the needs of traveling workers:


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