US approves application for seventh non-FTA LNG terminal

24 March 2014 17:57 Source:ICIS News

HOUSTON (ICIS)--The US Department of Energy (DOE) has approved an application to export liquefied natural gas (LNG) to non-free trade agreement (FTA) countries filed by the Jordan Cove LNG terminal proposed for the US Pacific Coast, it said on Monday.

The 6m tonne/year project proposed for Coos Bay in the state of Oregon is conditionally authorised to export up to 800 million cubic feet/day (800mcf/day) of natural gas for a period of 20 years, the DOE said.

Jordan Cove puts total cumulative capacity approved for global export at 70m tonnes/year.

The project envisages the liquefaction of pipeline natural gas imported from Canada, which will then be exported to Asian LNG consumers.

Canada’s National Energy Board granted Jordan Cove developer Calgary-based energy infrastructure company Veresen a 25-year licence to export 16.03 billion cubic metres/day (16.03bcm/day) of Canadian gas on 20 February.

Final investment decision is scheduled for 2015, pending final regulatory approval for the project being granted by the Federal Energy Regulatory Commission (FERC).

More than 20 applications have been filed by companies seeking to export LNG to non-FTA nations from the US. The US DOE has discretionary approval in granting non-FTA applications, although applicants automatically receive approval to trade with countries that have FTAs with the US.

So far, seven non-FTA licenses have been granted by the DOE. However, only one project, Cheniere Energy’s 18m tonnes/year Sabine Pass facility currently under construction on the US Gulf Coast, has both the required DOE and FERC approvals.

By James Fowler