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Veresen requests rehearing for Jordon Cove and Pacific Connector

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LNG Industry,


Veresen Inc. has announced that the Jordan Cove Energy Project, L.P. and the Pacific Connector Gas Pipeline, L.P. have submitted a request to the US Federal Energy Regulatory Commission (FERC) for a rehearing of the commission’s order on 11 March 2016 denying authorisation to construct and operate the Jordan Cove LNG terminal and Pacific Connector Gas Pipeline. FERC has 30 days to either grant or deny the request for a rehearing.

In March, Don Althoff, the President and CEO of Veresen, said: “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.”

Veresen and Pacific Connector have recently entered into several agreements demonstrating commercial support for both of the projects. For instance, Veresen recently stated that the key commercial terms for a minimum of 3 million tpy of natural gas liquefaction capacity had been finalised (representing at least 50% of the initial design capacity). In addition to this, Pacific Connector recently reached natural gas transportation service precedent agreements (TSPAs) with Macquarie Energy LLC, Avista Corp. and JCEP – each of which is subject to customary conditions. In aggregate, this represents over 75% of the pipeline’s rated capacity.

Thus, Veresen claims that such agreements are evidence of market support for the project, and that the project’s public benefits outweigh the possible negative impacts on landowners.

Althoff said: “Jordan Cove LNG and Pacific Connector Gas Pipeline will bring significant and lasting benefits to Coos County, as well as communities all along the pipeline route.

"We continue to see an outpouring of support from project proponents at each of the local, state and national levels. I thank our supporters for their continued confidence in the projects."

Edited from press release by David Rowlands

Read the article online at: https://www.lngindustry.com/liquefaction/11042016/veresen-requests-rehearing-for-jordon-cove-and-pacific-connector-2262/


 

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