The Federal Energy Regulatory Commissions voted overwhelmingly in favor of the Jordan Cove LNG project in Oregon but set one condition: Pembina, the company behind the project, must obtain all necessary permits for the construction from the state authorities, the AP reports.
"Currently, this project does not have a green light from state agencies," Oregon Governor Kate Brown said as quoted by the AP. "I have asked the state's lawyers to consider all appropriate legal action to assure that Oregon permitting processes will be followed."
Pembina has already applied for one state permit-a water quality certification document-and has been denied it. What's more, the Oregon Department of State Lands refused to grant Pembina an extension to submit documents requesting a permit for sediment dredging at Coos Bay in preparation for the construction of the Pacific Connector Gas Pipeline.
The pipeline will transport natural gas from another pipeline that brings it into Oregon from Alberta and then Pembina will liquefy this at the Jordan Cove facility before exporting it to Asia. Its daily capacity would be up to 1.04 billion cu ft of natural gas. The annual capacity of each of the five proposed liquefaction trains will be 1.5 million tons of LNG each.
Many would argue now is not the best time to add more LNG capacity, but most companies are betting on a recovery in natural gas markets over the next few years--and Asia remains a key market. However, it seems that the state of Oregon is not too fond of the idea, unlike federal regulators.
"After taking the necessary hard look at the project's impacts on environmental and socioeconomic resources, the order finds that the project's environmental impacts are acceptable considering the public benefits that will be provided by the project," one of the commissioners that voted in favour of the project said.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry. More