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Oregon LNG receives non-FTA authorisation

LNG Industry,

Oregon LNG has received authorisation from the US Department of Energy (DOE) to export LNG to countries without a Free Trade Agreement (FTA) with the US. Subject to final approvals before construction can begin on the terminal, the Oregon LNG terminal in Warrenton, Oregon will export up to 125 billion standard ft3/d for a 20-year period.

Non-FTA export authorisation from the DOE comes after it recently announced procedural changes to the review process aimed at prioritising more commercially advanced projects for review. Oregon LNG’s project is one of the most advanced in the review process conducted by the Federal Energy Regulatory Commission (FERC).

“We applaud the DOE decision, which places Oregon LNG in a very small group of projects in North America that have received conditional DOE approval for non-FTA exports,” said Peter Hansen, CEO of Oregon LNG.

Although Oregon LNG already has authorisation to ship LNG to 20 countries with which the US has an FTA, it will now be able to ship to energy hungry Asian markets where demand is highest.

Improving economy and security

“DOE approval is an important step towards the development of a project that will improve energy security for many of our country’s key trading partners while simultaneously providing Oregon with significant economic benefits and growth opportunities,” explained Hansen. “Oregon is one of the nation’s most trade-dependent states, with trade supporting almost 500 000 Oregon jobs in 2012. The Oregon LNG project will strengthen Oregon’s overall economy and its position in international trade.”

The US$ 6.3 billion project is expected to create more than 3000 direct construction jobs with specific amounts of project spending to be directed towards small, local businesses. Also, the project has agreed to create new opportunities for minority-, women-, and veteran-owned businesses. More than 150 workers will run the plant on an ongoing basis, and the Oregon LNG project will create more than 1500 additional indirect and induced jobs in the region. The Oregon LNG operation will contribute approximately US$ 60 million annually in new property tax revenues.

Natural gas will be transported via pipeline from Canada to the Warrenton facility.

Adapted from press release by Ted Monroe

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