Veresen plans to lead LNG export from US west coast
The Calgary-based Veresen Inc. (Veresen) is promoting smartly its Jordan Cove liquefied natural gas (LNG) project as located on the US west coast, on the shortest way to export from US to the most profitable markets in Asia.
Until three years ago, the US coasts were covered by more than 50 LNG import terminal projects.
Some were built and completed like Sabine, most of the others were stopped by the tide of the domestic shale gas production.
Few of these LNG terminal projects were thought on the West Coast in expecting supply from Australia or Indonesia.
Jordan Cove is one of them and Veresen intends to take advantage of this unique position to export to Asia.
Under the name of the Jordan Cove Energy Project L.P., Veresen is planning to locate its LNG plant on the Port of Coos Bay, in the Coos County of Oregon, where it holds already its LNG import terminal facilities.
To be located in an industrial zone of the Coos Bay harbor, the Jordan Cove LNG project should require:
– Inlet Pacific Connector Gas Pipeline of 1,000,000 dth /day
– LNG Trains facility with 6 million t/y of natural gas capacity
– Two LNG Tanks with a total storage capacity of 320,000 cubic meters
– Export terminal of 1,200,000 dth/d
– Gas-fired Combined Cycle Power plant of 340 MW
Veresen to include power plant in Jordan Cove LNG
Called South Dunes Power plant, the associated Jordan Cove project power plant is designed to supply the LNG plant and the local grid.
To preserve the environment, this South Dunes Power plant should be built in the former Weyerhaeuser Paper Mill adjacent to Jordan Cove LNG project.
Designed on 380 MW nominal power, the South Dunes power plant should deliver 340MW in operations.
According to the actual conceptual studies, Veresen estimates the investment to $5 billion capital expenditure for the aggregate Jordan Cove LNG project in which the LNG Trains facility would count for $3.5 billion.
In 2009, Veresen received the Federal Energy Regulatory Commission (FERC) Authorization for the Jordan Cove LNG import terminal.
The same FERC Authorization for the LNG export plant is then expected on early 2014.
On this base, Veresen is targeting to commence the construction of the Jordan Cove LNG project on mid-year 2014.
Considering this construction to take 42 months Veresen is scheduling to ship the first LNG carrier to Asia on the 4th quarter of 2017.
In this context, Veresen is challenging the few other projects on the west coast of North America such as Oregon LNG next door in USA, the Kitimat LNG project from Apache in British Columbia, Canada, the Canada LNG project from Shell also in BC., and the BC LNG project from the Haisla First Nation.