Federal Regulators Deny Liquefied Natural Gas Project In Southern Oregon

Mar 11, 2016

Federal energy regulators Friday denied an application to build a liquefied natural gas terminal and accompanying pipeline in Southern Oregon.

In a 25-page final order, the Federal Energy Regulatory Commission didn’t focus on the Jordan Cove LNG terminal itself. Instead they pointed to the Pacific Connector Pipeline, which would have brought natural gas 230 miles from south-central Oregon to Coos Bay. From there it would be liquefied and put on ships bound for Asia.

Regulators said the public benefit of the pipeline did not outweigh the adverse effects on landowners in its path.

"Because the record does not support a finding that the public benefits of the Pacific Connector Pipeline outweigh the adverse effects on landowners, we deny Pacific Connector’s request for certificate authority to construct and operate its project..." – Federal Energy Regulatory Commission in its rejection of the Jordan Cove project

Opponents had focused their objections on this piece of the project, with landowners expressing fears of losing their property through eminent domain.

Because the export terminal needs the pipeline to secure a steady supply of gas, regulators said denial of the pipeline made whole project moot.

"We find that without a pipeline connecting it to a source of gas to be liquefied and exported, the proposed Jordan Cove LNG Terminal can provide no benefit to the public to counterbalance any of the impacts which would be associated with its construction." – Federal Energy Regulatory Commission in its rejection of the Jordan Cove project

A leader in the Boost Southwest Oregon group that has advocated for the project, Mark Wall, said his group was disappointed but called the ruling a bump in the road.

The companies that proposed the terminal and pipeline – Veresen Inc. and Williams Companies – can appeal decision.

The Associated Press contributed to this report.

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