Jordan Cove LNG, a natural gas export facility proposed on the Oregon coast, has signed a 20-year sales agreement with world's largest liquefied natural gas buyer.
The deal appears to put the project, which could take gas from the B.C. Montney formation, back on track after running into a roadblock with U.S. regulators.
JERA Co. Inc, a joint venture of the Tokyo Electric Power Company and Chubu Electric Power Co., Inc., signed on to buy 25 per cent of the project's proposed 6 million tonnes per year output in a deal announced \ Tuesday.
The company is owned by Veresen Inc., a major midstream natural gas player with assets in the Dawson Creek area.
"This is an important milestone for the project and further demonstrates the market demand for Jordan Cove LNG," spokesperson Dorreen Miller wrote in an emailed statement. "(This) signals to the global industry that the southwest coast of Oregon is well-suited to supply the Asia Pacific market."
Michael Hinrichs, another project spokesperson, told the Alaska Highway News on March 15 that gas for the project could come from B.C., but stressed that those details are still up in the air.
"We have an export licence from Canada and an import licence from the U.S., so we would be able to take gas from the Colorado Rockies, the Canadian Rockies, Alaska gas," he said. "The project, as it stands right now, is pretty much open access."
Miller said Jordan Cove is is negotiations with other large LNG buyers from the Asia-Pacific region.
"We expect this announcement to galvanize support for (the project) among other buyers," she wrote.
The project hit a stumbling block on March 11, when the U.S. Federal Energy Regulatory Commission (FERC) ruled the benefits form the $5.3 billion export terminal and associated pipeline did not outweight "adverse effects" on landowners facing potential expropriation.
FERC also noted that it was rejecting the application in part, because Versen did not have sales contracts signed.
The company says it plans to file a request for a rehearing with FERC on or before April 11.
With files from Jonny Wakefield.
dcreporter@dcdn.ca
