Jordan Cove LNG: From Flatline to Pipeline?
PORTLAND, Ore. – Residents of Coos Bay, Ore., who think a years-long fight over a liquefied natural-gas terminal is over might be wrong.
A Canadian energy company backing the Jordan Cove terminal signed a preliminary deal last week with a Japanese power company, agreeing to purchase 1.5 million tons of liquefied gas annually.
The deal comes after the Federal Energy Regulatory Commission (FERC) denied a permit for the Jordan Cove terminal earlier this month, said Nick Abraham, a research fellow at the Sightline Institute.
"The announcement earlier this month was heralded as this end-all decision that the permit was nixed, so that the project was likely dead," said Abraham. "But a big part of this was whether they could secure demand for the project."
The natural-gas terminal would serve energy markets in Asia, where Abraham noted demand has dipped in the last few years. However, the recently signed agreement shows the project might still have value to Asia.
Supporters argue the terminal will bring jobs to the region. Opponents point out environmental concerns, and a 232-mile pipeline that would cut through southern and central Oregon.
Abraham said FERC cited local opposition to the terminal and pipeline in its reasoning for denying a permit.
"What these public hearings for this project have shown, what public outcry has shown, is that the opposition is in much greater numbers than the people trying to push the project through," he added.
According to Abraham, memories of a natural-gas pipeline leak in Porter Ranch, Calif., last October have scared some on the West Coast. In that case, 11,000 people were evacuated because of the severity of the leak. Porter Ranch residents are just now returning to their homes.
