FERC Affirms Denial of Jordan Cove Energy Project’s LNG Terminal Application

FERC has issued an order denying Jordan Cove Energy Project’s (Jordan Cove) and others’ requests for rehearing of FERC’s March 11, 2016 order which denied (1) Jordan Cove’s application to construct and operate an LNG export terminal at Coos Bay, Ore., and (2) Pacific Connector Gas Pipeline’s (Pacific Connector) proposed interconnected feeder pipeline.  FERC’s March 11 order found that Pacific Connector provided little or no evidence of market need for its feeder pipeline “sufficient to outweigh the potential harm to the economic interests of landowners whose property rights might be taken by exercise of the right of eminent domain.”  FERC denied the LNG export terminal application because the terminal project was not feasible without a pipeline to bring gas to the terminal.  In denying rehearing, FERC, among other things, stated that Pacific Connector “was afforded ample time – over 3.5 years – to demonstrate evidence of market demand” prior to the March 11 order and failed to do so.  FERC also affirmed the March 11 order’s finding “that without a pipeline connecting it to a source of gas to be liquefied and exported, the proposed Jordan Cove LNG Terminal can provide no benefit to the public to counterbalance any of the impacts which would be associated with its construction.”