In today's competitive world, energy fuels a region's economic well-being. Even as the world moves toward greater reliance on wind, solar and other renewable energy sources to fill energy demands, natural gas, the cleanest fossil fuel, will be called upon to fill the need for growing economies in the United States and around the world.Read More...
As recently as three years ago the U.S. seemed destined to become dependent upon imported liquefied natural gas (LNG) to fill the gap created by dwindling domestic natural gas production. The Jordan Cove Energy Project was poised to provide the infrastructure that would allow for the receipt of this LNG to supply the Pacific Northwest's natural gas needs. The North American natural gas supply pictured has been turned on its head with the advent of new techniques that unlock natural gas held within shale. In a few short years the ability to economically tap this shale gas has resulted in gas production reaching new historical highs and seen recoverable gas reserves jump 10 fold to greater than 100 years of supply, and still growing. As domestic gas producers have become more efficient at applying these new techniques the cost of production has dropped to the point where the U.S. is now one of the lowest cost natural gas producers in the world. This radical turn of events has created benefits for every U.S. citizen as the price paid by consumers to heat their homes and for utilities to fuel electric generators has dropped to the lowest cost seen in decades.
The U.S. is now positioned to become a net exporter of natural gas as virtually all of the existing LNG importation facilities have moved to add exporting capability. As the only Federal Energy Regulatory Commission certified regasification terminal on the U.S. Pacific Coast, Jordan Cove, is also taking the steps necessary to establish itself as a facility capable of both import and export of LNG. The Jordan Cove Energy Project L.P. is proposing to add a new state-of-the-art Liquefaction Plant that will be located on the same site as the importation facilities in the Oregon International Port of Coos Bay in Coos County, Oregon. The Jordan Cove Energy Project is being developed and will be owned and operated by Veresen, Inc., a Calgary based owner and operator of North American energy infrastructure projects.
When built, the Liquefaction Plant will be capable of receiving natural gas delivered to Coos Bay via its associated pipeline, the Pacific Connector Gas Pipeline. At Jordan Cove the natural gas will be cooled to a temperature of minus 260 degrees F whereupon it becomes a liquid (LNG). The LNG is then stored in two 160,000 cubic meter full-containment cryogenic tanks until specially-designed marine vessels are loaded to transport the LNG cargo to customers throughout the Pacific Basin. In the future, should the North American supply picture take a turn for the worse, the Jordan Cove facility can be readily modified to receive imported LNG to supply natural gas consumers in the Pacific Northwest and adjacent markets.
Significant economic benefits will result from the construction of the $7.5 billion Jordan Cove Energy Project, including substantial increases in property tax revenues, the addition of up to 150 direct and contracted high paying permanent jobs, and investment in local energy and maritime infrastructure to support the operation of Jordan Cove and other potential new industry.
The Jordan Cove Energy Project continues to undergo a rigorous regulatory review process to ensure that the facility is designed and operated to meet stringent safety, security and environmental standards. Agencies involved in this review include the Federal Energy Regulatory Commission (FERC), the United States Coast Guard, the United States Army Corps of Engineers, the Oregon Department of Energy, the Oregon Department of Land Conservation and Development, the Oregon Department of Environmental Quality, the Oregon Department of State Lands and many other local, State and Federal agencies.
The Jordan Cove regasification (import) terminal received its Final Environmental Impact Statement (FEIS) on May 1, 2009. FERC Authorization for the regasification terminal was received on December 17, 2009. The Liquefaction Plant has just entered the FERC process to establish compliance with the National Environmental Policy Act (NEPA) and is expected to receive all required federal, state and local approvals by early 2014. Facility construction is scheduled to start in late 2014, taking a total of 42 months to complete. The Jordan Cove Energy Project is targeted to go into service in the 4th quarter of 2017.