FERC denies application for Jordan Cove LNG facility

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The Federal Energy Regulatory Commission (FERC) has denied the application for the construction and operation of a liquefied natural gas (LNG) export terminal and natural gas pipeline in Coos Bay, Oregon.

The proposed Jordan Cove Energy Project was supported by the Oregon State Building and Construction Trades Council and the Oregon AFL-CIO.

The $6 billion facility was to be built under a project labor agreement (PLA) with building trades unions. Construction was anticipated to span 42 months, with an average workforce of 900, and a peak workforce of approximately 2,100.

The project consists of three primary components:

  • An export facility located on the North Spit in Coos Bay to liquefy and transfer natural gas to maritime vessels.
  • The Southern Dunes Power Plant to provide continuous power to the export facility.
  • A 234-mile Pacific Connector pipeline to deliver natural gas to the facility from North American production sources.

Specifically, the FERC said on March 11 that the public benefits of the pipeline did not outweigh the potential for adverse impacts on landowners and communities.

“Please know that this is not the end of the road, and that Jordan Cove LNG has plenty of options,” said Boost Southwest Oregon, a coalition of organizations, politicians and individuals that support the privately-funded project.

“Clearly, we are extremely surprised and disappointed by the FERC decision,” said Don Althoff, president and CEO of Veresen, the parent company of Jordan Cove LNG. “The FERC appears to be concerned that we have not yet demonstrated sufficient commercial support for the projects. We will continue to advance negotiations with customers to address this concern.”

Althoff said a request for a rehearing of the decision will be filed.

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