Jordan Cove floats Oregon LNG trade devise with US FERC

Washington (Platts)–23Sep2011/557 pm EDT/2157 GMT

Jordan Cove Energy Project on Friday told a US Federal Energy
Regulatory Commission that it is seeking to trade domestic liquefied natural
gas from a designed depot on Coos Bay, Oregon.

The association filed an focus on Thursday with a US Department of
Energy seeking to trade adult to 1.2 Bcf/d of healthy gas to countries with
which a US has giveaway trade agreements, it told FERC.

The elect has already authorized Jordan Cove to build a southern
Oregon depot to import 1 Bcf/d of LNG. It also privileged a association to
build a 230-mile tube that would lift a gas to Malin, Oregon, on the
California border.

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The association told FERC Friday that if it gets a curtsy from DOE, it will
ask a elect to concede it to change a devise to export. “Jordan Cove
is entirely wakeful that that it will need FERC authorisation to cgange its
plans for a depot so that it can be used for LNG exports as good as
imports.”

Jordan Cove is a latest in a fibre of LNG terminals that have applied
to trade domestic gas. The trend is being driven by sepulchral US gas
production, that has led to low gas prices and slumping LNG imports.

However, a focus is a initial to come from a US developer on the
West Coast, and it is a initial US bid to build an trade depot from
scratch. Other comforts looking to export, such as a Sabine Pass terminal
in Louisiana and a Cove Point depot in Maryland, are looking to turn
existing import terminals into trade facilities.

Project Manager Robert Braddock pronounced a West Coast depot will have
an advantage over a other US terminals seeking to export. “The principal
difference is we have entrance to a opposite operation of resources from both
Canadian gas and US gas. But equally critical is we would have certainly
much closer entrance to a Asian markets,” he said.

Braddock also is not fearful of foe from a north, where Kitimat
LNG is formulation an trade depot in British Columbia. “We indeed presume
that Kitimat would be built. We assume that we would be built series dual and
we consider there is copiousness of room for dual such comforts on a West Coast.”

Jordan Cove will request to cgange a skeleton during FERC after it receives
“significant commitments” for capacity, Braddock said. The association expects to
make this filing by a finish of a year, he added. At a same time, the
company will expected ask DOE to concede LNG exports to non-free trade agreement
countries as well, he said.

But Jordan Cove’s exports skeleton are expected to face antithesis from
environmentalists, who waged a prolonged conflict opposite a company’s import
terminal. Susan Jane Brown, a staff profession during a Western Environmental Law
Center, who represents environmental organizations and landowners, pronounced she is
still digesting a news, though that a trade devise will expected annoy her
clients. “It would be one thing to import a good that would be used
domestically. But exporting a domestic product that they have prolonged advocated
that we need domestically, it is a attract and switch,” she said.

–Kate Winston, catherine_winston@platts.com

Article source: http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6519626