Jordan Cove LNG developers scrap project

Developers of the proposed Jordan Cove LNG export facility in Oregon told federal energy regulators they will not move forward with the project, confirming the end of an effort that has stalled for years amid regulatory and commercial challenges.

Jordan Cove Energy Project LP, a subsidiary of Canada's Pembina Pipeline Corp., and Pacific Connector Gas Pipeline, LP, a unit of Williams Cos. Inc. developing an associated pipeline, asked the Federal Energy Regulatory Commission on Dec. 1 to vacate federal authorizations to build the facilities, citing trouble getting state permits. The developers said they had completed a review of the project based on these setbacks (CP17-495 and CP17-494).

"Applicants have now completed this review and have decided not to move forward with the project," the developers wrote. "Among other considerations, applicants remain concerned regarding their ability to obtain the necessary state permits in the immediate future in addition to other external obstacles."

"Applicants respectfully submit that, following the filing of this brief, the commission need not expend further resources considering the issue of the appropriateness of a stay," the developers said.

FERC had approved the terminal and associated facilities in March 2020. But a federal appeals court in a Nov. 1 order remanded the proceeding to the commission for the purpose of considering whether to suspend a permit for the pipeline to prevent property condemnations (Deborah Evans v. FERC, 20-1161). The developers' Dec. 1 filing came in response to FERC telling them on Nov. 18 that they "should clarify whether they plan to move forward with the projects."

Pembina had told the U.S. Court of Appeals for the District of Columbia Circuit in April that it would "pause" the development of Jordan Cove to assess the impact of state regulatory decisions that could threaten the project. But the developer had struggled to overcome other major hurdles, including stiff environmental opposition and challenges in securing commercial agreements needed to advance the project to construction.

If built, Jordan Cove could have benefited from being the first LNG export facility on the West Coast of the Lower 48, an advantage because of the shorter shipping distance to East Asia compared with existing terminals on the Gulf Coast.

Landowners who had argued they were stuck in limbo while the project remained paused after more than 15 years of uncertainty over the development wanted the appeals court to vacate the certificate order for the project. Even though Pembina has yet to commercially sanction the pipeline, the landowners contended that FERC authorizations for the projects meant the developers could start pursuing eminent domain proceedings at the federal district court level to secure land for construction.