LNG rests on more than feds' approval

By Alexander Rich, Staff Writer
Monday, May 04, 2009 | 1 comment(s)

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Getting federal approval to build its liquefied natural gas terminal would be a big step for Jordan Cove Energy Project. But it isn't the only step, and certainly not the last.

There still are state permits to collect, including air emissions and Coastal Zone Management approval. Jordan Cove's also waiting to get a thumb's up from the U.S. Army Corps of Engineers to allow construction of the slip.

"You can't begin construction until all these permits are available," said Project Manager Bob Braddock.

There's also the question of demand for the terminal. No energy companies have signed contracts to use the proposed terminal, though Braddock expects to announce agreements later this year.

"They aren't going to make commitments until it is technically feasible, which includes the issue of permits," he said.

Best-case scenario, Braddock said LNG terminal construction could start in the third quarter of 2010.

Still, there's the prospect of appeals. The state of Oregon has appealed FERC's approval of the Bradwood Landing project on the Columbia River. Department of Justice spokesman Tony Green said the appeal is based on concerns the decision failed to consider environmental issues like clean water and endangered species. While it's hard to say what will happen with Jordan Cove - it's up to Gov. Ted Kulongoski to decide to appeal a decision - Green said the option is open. It would only happen if it appears the law wasn't followed correctly, he said.

"Depending on what FERC does, the state will weigh in any and all legal options, as it did in the Bradwood Landing case," Green said.

Even if the FERC decision is appealed, Jordan Cove still could go ahead with the project.

"You take the risk that the (decision) could be overturned," Braddock said. "It becomes a commercial decision about how you feel going ahead.

"You've really got to look at the circumstances."

Federal officials question the ability of renewable energy sources to produce the same amount of power that LNG could deliver to the region. They also considered alternatives routes for the 234-mile Pacific Connector pipeline linking the terminal to Malin and settled on recommending a pipeline route going up Haynes Inlet and then over land, east of Glasgow.

They went on to say that building an LNG terminal in Coos Bay would provide natural gas to states outside Oregon. That's drawn the ire of some local opponents, but it's also the reason why federal officials say Jordan Cove Energy Project is the best alternative in the state.

Energy companies have proposed projects at Bradwood Landing and at Warrenton, both on the Columbia River. Federal officials dismissed those projects in the final environmental impact statement released Friday, saying they wouldn't be able to serve southern Oregon, northern Nevada and northern California. They also frown on five proposed pipelines from the Rockies, one because it wouldn't serve the southern markets, and the other four because they are longer than the Pacific Connector.

Charles Deister, spokes-man for North Star Natural Gas, the company proposing to build Bradwood Landing, agrees with Braddock that, at most, there would be one terminal built in Oregon. But he said his office is not worrying about Jordan Cove.

"We're focused on permitting our project," he said.



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roaringcrab wrote on May 2, 2009 7:00 PM:

Now let me get this straight, the USA now has discovered and is producing more natural gas then ever before in our history and some people want to import LNG by ship, clear cut a 234 mile swath through rivers, streams, forests, and take land away from private owners for a pipeline that could rupture in the event of a earthquake and be vunerable to terrorist attacks, all to get gas to California.


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