The Canadian pipeline company behind a proposed liquefied natural gas liquefaction/export facility in Oregon is intent on developing what's known as Jordan Cove LNG, Kallanish Energy reports.
However, Pembina Pipeline said it is also eying other potential LNG projects in British Columbia where it could purchase a stake or take a lead development role.
The company is still pushing the Jordan Cove LNG project at Coos Bay, Oregon, while awaiting a final decision from the Federal Energy Regulatory Commission.
Could be voted on March 20
FERC postponed a decision last month and it is expected Jordan Cove LNG could come up for a FERC vote on March 20, company officials said last week in an earnings call with analysts and the media.
Oregon regulatory agencies have also rejected needed permits for the plant.
“We want to be in the LNG business,” said president and CEO Michael Dilger. “We think the FERC approvals will build momentum for the project with the state. The scarcity of that project, it probably will be the only West Coast North American LNG terminal, it still intrigues us and we're going to stick with it, because our cost to stick with it is nominal. And it has huge, huge upside. And so the math is pretty easy. We're going to methodically move that one forward.”
Looking at a number of locations
Dilger said, “We're looking at a bunch of locations in BC and and there is attributes of lower risk with some existing projects that are appealing, but those are not free. So, just weighing all that out, looking at really what the gating criteria is for BC LNG, if for example, it was determined that access to green power was a gating issue, then that's something you have to look at. First Nations' support is something you have to look at. So all the locations, we're putting them through our key attributes and we'll try to move something forward.”
Getting such projects through regulatory and court challenges and construction could take until the end of the decade, he said.
Jordan Cove would be the first U.S. LNG project on the Pacific Coast. The project calls for a 200-acre LNG liquefaction/export terminal in Coos Bay, and a 229-mile pipeline. The Pacific Connector Gas Pipeline would run from Malin, Oregon, in Klamath County to the export terminal. It would be 36 inches in diameter.
Pembian took over project in 2017
The companies behind the project are the Jordan Cove Energy Project LP and the Pacific Connector Gas Pipeline LP. They are affiliates of Pembina, a Canadian-based pipeline company. It took over the Oregon LNG project in 2017.
The facility could liquefy up to 1.04 billion cubic feet of natural gas per day for export to Asia. It would fill about 120 LNG carriers per year. The project could move natural gas from the Rocky Mountain states to overseas markets. It could also serve Alberta so Canadian gas producers are very interested in the Oregon project.
FERC has considered Jordan Cove LNG twice before. The initial plan by Energy Projects Development Ltd. called for importing LNG at Coos Bay, and shipping the gas to Malin, a natural gas pipeline hub.
FERC approved the plan in 2009, but changing market conditions doomed that project. The FERC approval was vacated in 2012.
In May 2013, Calgary-based Veresen proposed a pipeline and export terminal at Coos Bay, that would produce 7.8 million tons per year of LNG.
But that $10 billion (U.S) proposal was rejected by FERC in March 2016. It said the company had failed to demonstrate a need for the facility and the project would adversely impact neighbors. Pembina then submitted a revised plan.