FERC Issues Order Authorizing Jordan Cove LNG Project

FERC has issued an order authorizing Jordan Cove Energy Project L.P. (Jordan Cove) to site, construct, and operate a new LNG export terminal and associated facilities in Coos County, Ore., and an interconnected 229-mile feeder pipeline. FERC’s authorization of the project was split, with Commissioner Glick stating his dissent was made “because it violates both the Natural Gas Act (NGA) and the National Environmental Policy Act (NEPA)” by not, among other things, “assess[ing] whether the impact of the Project’s greenhouse gas (GHG) emissions on climate change is significant.”  Commissioner McNamee released a concurring statement stating that he disagrees with contentions that “the NGA authorizes the Commission to deny a certificate application based on the environmental effects that result from upstream gas production, that the NGA authorizes the Commission to establish measures to mitigate GHG emissions, and that the Commission violates the NGA and NEPA by not determining whether GHG emissions significantly affect the environment.”  In 2016, FERC denied certificate authorization for the interconnected feeder pipeline because the applicant did not show that the pipeline was needed and, at the same time, denied Jordan Cove an certificate to construct the export terminal because it had no natural gas supply without the pipeline.