Veresen Inc. has announced that it has finalised the key commercial terms with JERA Co. Inc. in respect of the long-term provision to JERA of natural gas liquefaction capacity at the Jordan Cove LNG facility in Coos Bay, Oregon, US. The LNG facility is expected to have an initial design liquefaction capacity of approximately 6 million tpy.
The preliminary agreement covers the purchase by JERA of at least 1.5 million tpy of natural gas liquefaction capacity for an initial term of 20 years. This agreement is subject to customary conditions, including the execution of a detailed liquefaction tolling agreement, which Veresen and JERA will continue to work together to conclude. The deal is also subject to the LNG project obtaining applicable regulatory approvals. Negotiations for the remaining liquefaction capacity are ongoing with other parties.
JERA is a joint venture (JV) established in April 2015 by Tokyo Electric Power Co. Inc. (TEPCO) and Chubu Electric Power Co. Inc. (Chubu Electric). The JV was created to implement a comprehensive alliance among its two shareholders covering the entire energy supply chain.
Don Althoff, President and CEO of Veresen, said: "This agreement signals strong market support for the Jordan Cove LNG project from the world's largest LNG buyer and represents a significant step forward in the project's development […] We are pleased to have JERA as our first customer and look forward to deepening our relationship with them as we continue to progress Jordan Cove LNG."
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/22032016/veresen-finalises-terms-with-jera-for-liquefaction-capacity-2168/