Jordan Cove Energy Project Files Second Application for LNG Terminal

Jordan Cove Energy Project (“Jordan Cove”), wholly-owned by Canadian corporation Veresen Inc., has filed an application with FERC for authorization to construct and operate a natural gas liquefaction and LNG export terminal located on the bay side of the North Spit of Coos Bay, Ore.  The terminal is designed to receive a maximum of 1,200,000 Dth/day of natural gas and produce a maximum of 7.8 million metric tons per annum (“mtpa”) of LNG for export to Asian markets, particularly Japan.  Pacific Connector Gas Pipeline, LP (“Pacific Connector”) concurrently filed an application with FERC for authorization to construct and operate a 229-mile-long, 36-inch-diameter pipeline to interconnect the terminal with the existing Ruby Pipeline LLC and Gas Transmission Northwest LLC systems near Malin, Ore.

In March 2016, FERC denied similar applications by Jordan Cove and Pacific Connector due to the lack of a showing of market demand.  In the new application, Jordan Cove states that it has finalized the key commercial terms with JERA Co., Inc., a joint venture of Tokyo Electric Power Company, Incorporated and Chubu Electric Power Co., Inc., for the sale of at least 1.5 mtpa of natural gas liquefaction capacity for an initial term of 20 years, subject to customary conditions including the execution of a detailed liquefaction tolling agreement.  Jordan Cove also states that it has reached preliminary agreement with ITOCHU Corporation with respect to certain key commercial terms for the purchase by ITOCHU of an additional 1.5 mtpa of natural gas liquefaction capacity for an initial term of 20 years.  Pacific Connector states that it and Jordan Cove have executed two Transportation Services Precedent Agreements that provide for Jordan Cove, as an anchor shipper, to contract for 95.8 percent of the firm capacity available on the Pipeline.