Grant could add cargo dock to LNG project
By Alexander Rich, Staff Writer
Thursday, October 15, 2009 |
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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