There will be no dual use natural gas facility for Jordan Cove Energy Partners. With only one dissenting vote the Federal Energy Regulatory Commission voted to vacate an earlier order authorizing the construction and operation of a LNG terminal and the Pacific Connector pipeline because ” no longer intends to import LNG”.

Docket Nos. CP07-441-001, CP07-442-001,
CP07-443-001, CP07-444-001

FERC Vacates Order Authorizing Jordan Cove LNG Project

The Federal Energy Regulatory Commission (FERC) today vacated, without prejudice, an order authorizing Jordan Cove Energy Project, L.P. to site, construct and operate a liquefied natural gas (LNG) import terminal in Coos County, Oregon, and the related Pacific Connector pipeline from the terminal to a point near the Oregon/California border.

Jordan Cove had notified FERC on Feb. 29, 2012, that due to current market conditions it no longer intends to implement a Dec. 17, 2009, authorization to construct and operate an import terminal. In the same filing, Jordan Cove sought pre-filing status to explore the feasibility of a liquefaction export project that would be built and operated at the same site. FERC granted that status (Docket No. PF12-7-000).

FERC is not changing its longstanding policy of allowing the market to determine which gas infrastructure projects go forward, once the Commission has determined that a project would not result in substantial adverse impacts. But as Jordan Cove no longer intends to import LNG, the Commission is vacating that authorization. Jordan Cove may submit a new application to construct and/or operate facilities to import natural gas if it determines there is a market need for import service in the future.

Further, FERC said that Jordan Cove’s pre-filing application for export authorization will be considered on its merits in that proceeding.

In light of these actions, FERC dismissed as moot requests for rehearing.

Commissioner Philip Moeller dissented on today’s order.