Grant could add cargo dock to LNG project

By Alexander Rich, Staff Writer
Thursday, October 15, 2009 | 7 comment(s)

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Port officials could have a greater stake in the liquefied natural gas project proposed for Coos Bay if a sizable federal grant comes their way.

The Oregon International Port of Coos Bay has filed a $45.3 million application for a Transportation Investment Generating Economic Recovery grant. The funds, which Congress allocated through the federal stimulus package, would be used to build a cargo dock berth on the west end of the slip dock in conjunction with the LNG project.

The developer, Jordan Cove, has agreed to build the dock and a berth on the east end, which it would lease from the port, said Martin Callery, the port’s director of communications. But under existing plans, the west end of the dock would be only a graded slope.

The grant funds would allow the port to put a sheet pile bulkhead there during the excavation process. Not only would the port have a berth to entice additional development, but it would avoid lengthy — and expensive — permitting requirements.

Workers would first construct a berm along the waterfront before beginning excavations further inland. If the port gets the grant and Jordan Cove goes ahead with its project, the berths would be built before workers breach the berm to let in water from the bay.

If the port has to wait until after the dock is flooded, it would have to file waterway permits that could increase the cost of the project two or three fold, Callery said.

There is a lot of competition for the TIGER grant. The U.S. Department of Transportation received almost 1,400 applications from every state in the country, including 21 from Oregon. The agency has $1.5 billion to distribute and more than $56 billion worth of requests, a press release said.

“We know the competition is going to be tough, but we feel we have a well-executed application,” said Callery.

Even if the port gets the grant, it might have to turn it down if Jordan Cove doesn’t build the terminal. The LNG developer still is waiting for approval from the Federal Energy Regulatory Commission. It also has other permits to complete, pushing out the start of construction to at least late 2010.

The developers have suggested the FERC has waited on its application until a fifth member was confirmed by the U.S. Senate. A nominee, John Norris of Iowa, has been up for confirmation since Tuesday, but a vote hasn’t taken place.

If the Department of Transportation awards the port a grant, it would have to use the funds by February 2012. The port will know whether it got the grant by February 2010.



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citizen2 wrote on Oct 17, 2009 2:41 PM:

How much of the Coos Bay area's future will the Port bet on this misbegotten LNG terminal. Container capacity sits idle up and down the West Coast and the Port makes a proposal where there is neither consumers nor infrastructure but where there is real danger of an eathquake and tsunami. Where is the long range land use development plan for this proposal? Where are the roads, sewer capacity, or markets for what products to be made in Coos Bay/North Bend? What are you going to do when the LNG proposal is killed?

Just An Observer wrote on Oct 16, 2009 9:55 AM:

Pignuts, if the capacity being used today is below the curve, rest assured by the time the new docks are in place (if they are put in place), that their capacity will be sorely needed. The economy won't stay in the tank forever or at least I hope not!

dan milburn wrote on Oct 16, 2009 9:18 AM:

A few important points here. 1) Maztec aready put in the plumbing. Which Commisioners paid for it? I'll bet they are all for LNG huh! 2) the plumbing heads away from Jordan Cove - not towards it. Get it? Big Oil always wins, and you know what runs downhill. Ferc doesn't have a committee chairman! They don't have the ability to DECIDE anything until they have a full committee. See those big tanks in Roseburg yet? What are they gonna be full of? Hot air? Remember the local Union Oil Depot? They will fill their vacancies on the committee, meet and decide yes. Bank on it! Advice? I'll bet Jeff would advise you to buy stock in Natural Gas. Who wants to bet Farr's is the only folks smart enough to bring in truckloads of gas appliances?

Pig Nuts wrote on Oct 15, 2009 7:46 PM:

Just An Observer

"The major West Coast ports are already at capacity".

You mean was don't you?

Take a sneaky peaky at the current state of shipping.

http://www.investmenttools.com/futures/bdi_baltic_dry_index.htm

This Isn't even close to capacity in a game of horseshoes & hand grenades.

I admire the effort boys but this is another strike out. Come now, don't we have anyone with some vision?

The government is begging to hand out monopoly money & you are going to miss the boat!

Container shipping is based an consumption. Do you plan on shipping unemployment checks & food stamps? Our country is consuming lots of those.

Identify future trends. Innovate something green... Times a ticking, you snooze you lose for another 60 - 70 years of being a zero sum game.

mark smith wrote on Oct 15, 2009 3:24 PM:

Don't worry folks with Obama as a President no grant will go unfilled. We have 1.5 billion available for now, but rest assured taxpayers will cough up the other 54.5 billion in the name of recovery.

IWanttoknow wrote on Oct 15, 2009 2:26 PM:

Iwanttoknow if the 'build it and they will come' concept will work for the spit? Seem a T-dock was build and was under utilized; same with the fish plant. If (a big if) the LNG is build I will make a WAG for some spin off business: Cryogenic lab; flash freeze seafood, etc., bled off gas could be unitized for these industries, super cold gas could be used to generate electricity, cold storage, etc. Maybe, the saying should be 'don't build and they won't dare come' bye

Just An Observer wrote on Oct 15, 2009 12:34 PM:

Handling container cargo is the long term goal to pursue. The major West Coast ports are already at capacity. The right kinds of docks when combined with a rebuilt railroad line will get the port back in the swing of things.


Take note how expensive the bureaucratic costs are for these projects. That is where major changes are needed. When process trumps all, we are in a world of hurt/


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