June 18, 2020 Read More →

Controversial Jordan Cove LNG plant gets support from obscure organization

DeSmog Blog:

On May 24, a full-page ad appeared in The Oregonian, Oregon’s largest newspaper. The “open letter,” addressed to Gov. Kate Brown, asked her to support Jordan Cove LNG, a controversial coastal liquefied natural gas (LNG) export terminal. Between the “COVID-19 pandemic and the ensuing economic fallout,” the project would be crucial to restoring the state’s economy, the letter argued. “We’re going to need as many jobs as we can get, and very soon.”

“We ask you to listen because Jordan Cove is about Oregon, but it is also about much more,” the letter said, a statement that certainly seems to describe the entity that bought the ad, the Western States and Tribal Nations Natural Gas Initiative, or WSTN. Despite its sole focus on exporting natural gas through the West Coast, the group is virtually unknown in Oregon.

Originally proposed by Canada-based Pembina about 15 years ago, the $10 billion Jordan Cove LNG project consists of a gas export terminal on the southern Oregon coast, connected by a 229-mile pipeline that would extend to Malin, Oregon, where existing pipeline infrastructure runs all the way to the Rocky Mountain region. As envisioned by Pembina, the Jordan Cove terminal and the Pacific Connector pipeline would be capable of exporting 7.8 million tons of liquefied natural gas per year.

 At current prices, the economics of liquefying American gas and exporting it abroad are “imploding,” according to the Institute for Energy Economics and Financial Analysis. As many as 45 shipments of American natural gas were recently canceled by buyers because of the market glut, according to S&P Global Platts.

But Jordan Cove’s other economic headwinds predate the pandemic. Despite the fact that Pembina has pushed Jordan Cove for more than a decade, the project has yet to actually ink a deal with any buyers for its gas, a fact that FERC cited when rejecting the project four years ago. Against that backdrop, Jordan Cove LNG has not demonstrated that it is “needed,” FERC’s Glick said in his May dissent, even though a lack of demand is a factor FERC is supposed to take into account before approving any major project.           

[Nick Cunningham]

More: With Prospects Souring for Oregon Gas Terminal, an Obscure Group Raises Pressure for State Approval

Posted in: IEEFA In the News

Comments are closed.