CLIMATE VICTORY: FERC deals blow to Coos Bay gas export facility and pipeline

In a decision that stunned both backers and opponents of the project, the Federal Energy Regulatory Commission (FERC) on Friday dealt a major blow to the proposed Jordan Cove Liquefied Natural Gas export facility in Coos Bay.
FERC denied applications from the Calgary-based energy-company Veresen Inc. to build the Jordan Cove Energy Project in the Oregon coastal town and from the Williams Partners to construct the Pacific Connector feeder pipeline.
Last September, the regulatory agency that oversees the interstate transmission of electricity, natural gas, and oil, approved the final environmental impact statement for the LNG plant and pipeline.
However, they were also required to balance the need (or “public benefit”) for any project against any adverse impacts it would have on landowners or the environment.
The need for Jordan Cove was based on projected demand for gas from Asian customers, but market upheaval at present has made it difficult for the project’s backers to demonstrate that the demand exists.
FERC noted in its decision that neither Veresen  or Williams had as yet signed any actual contracts to sell gas from the pipeline and terminal.
At the same time, the companies had also been stymied in their efforts to negotiate easements with landowners along the 232-mile pipeline route, with over 90 percent of 630 refusing to sign.
The commissioners recognized as adverse impacts the landowners’ concerns with devaluation of their properties, loss of potential revenue and harm to business operations, including timber, agriculture and oyster harvesting.
FERC’s order said, “Because the record does not support a finding that the public benefits of the Pacific Connector Pipeline outweight the adverse effects on landowners, we deny Pacific Connector’s request…to construct and operate the pipeline.”
With no pipeline, it was also impossible to demonstrate any public benefit to the LNG terminal, so the commission denied that application as well.
After the decision was handed down on Friday afternoon, KBOO’s Paul Roland spoke with Deb Evans, one of the affected landowners, who helped write the letter to FERC that played a big part in their decision.
Late Friday afternoon, Vereson  released a statement saying that Jordan Cove LNG and Pacific Connector will file a request for a rehearing of the decision.
Don Althoff, President and CEO of Veresen, said his company will continue to advance negotiations with customers to demonstrate the commercial viability of the project.