Veresen Inc. (VSN) has announced that the Jordan Cove Energy Project, L.P. (JCEP) and Pacific Connector Gas Pipeline, LP (Pacific Connector) have been submitted to the Federal Energy Regulatory Commission (FERC) to request for a rehearing of the FERC's order issued on 11 March 2016, denying both applications for authorisation to construct and operate the Jordan Cove LNG terminal and the Pacific Connector gas pipeline.
Veresen and Pacific Connector have entered into several agreements that demonstrate significant commercial support for the projects. Veresen recently announced that it has finalised the key commercial terms for the purchase of at least 3 million tpy of natural gas liquefaction capacity, representing at least 50% of the project's initial design capacity. In addition, Pacific Connector recently executed natural gas transportation service precedent agreements (TSPAs) with Macquarie Energy LLC, Avista Corporation and JCEP, which in aggregate represent in excess of 75% of the rated capacity of the pipeline. Each TSPA is subject to customary conditions. Avista is a local distribution company, which serves communities along the pipeline. The other two TSPAs are intended to facilitate the transportation of natural gas to the Jordan Cove LNG terminal.
In the request for rehearing, JCEP and Pacific Connector request that FERC consider the agreements with customers of the LNG terminal and shippers on Pacific Connector as evidence of market support for the projects, and that the public benefits of the projects outweigh the potential adverse impacts on landowners.
"Jordan Cove LNG and Pacific Connector Gas Pipeline will bring significant and lasting benefits to Coos County, as well as communities all along the pipeline route," said Don Althoff, President and CEO of Veresen. "We continue to see an outpouring of support from project proponents at each of the local, state and national levels. I thank our supporters for their continued confidence in the projects."
FERC has 30 days to grant or deny the request for rehearing. FERC may grant rehearing, deny rehearing or grant rehearing solely for purposes of extending the 30 day deadline, followed by an order on the merits at a later date.
Edited from source by Stephanie Roker
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/12042016/jordan-cove-and-pacific-connector-request-ferc-rehearing/