US regulators reject Veresen’s proposal for Oregon LNG export project

The US Federal Energy Regulatory Commission (FERC) has rejected Veresen Inc.’s multibillion-dollar proposal to build a terminal in Oregon that would export as many as two tankers of natural gas a week, according to Bloomberg. FERC also denied the company’s plan to a build a pipeline with Williams Partners LP to supply gas to the terminal.

FERC commented that Williams and Veresen had failed to demonstrate that the pipeline’s benefits would outweigh the “adverse effects on landowners.” And without a pipeline supplying gas, the Jordan Cove export terminal “can provide no benefit to the public to counterbalance” the impacts associated with its construction, the agency said.

Bloomberg noted that the project has been mired in regulatory setbacks since it was first proposed, from delays over a state water permit to the extension of its public commenting period. FERC's recent decision throws the future of the project into question.

Veresen planned for four “trains,” or liquefied natural gas (LNG) production plants, at Jordan Cove that would have been capable of making 6.8 million metric tons of LNG a year. The 232-mile (373-kilometer), $1.74 billion Pacific Connector gas pipeline proposed to supply the plant would have been owned by Veresen and Williams Partners.


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