Williams official: "Strong interest" in LNG exports at Jordan Cove

Published: Aug 11, 2011

The developers of the Jordan Cove LNG Terminal in Oregon appear to be
warming to the idea of adding natural gas liquefaction and export facilities to
already-approved import facilities after they downplayed that possibility in an
argument with environmentalists in front of FERC last month.

"Due to the prolific Canadian and U.S. shale production, LNG export is now
supported by market fundamentals," said John Davis, manager of marketing
services for Williams Cos. Inc.'s Northwest Pipeline GP, at the Rocky Mountain
Energy Epicenter conference on Aug. 4. "The partners have currently been
assessing the viability of a dual-use [import and export] LNG facility. We're
talking with several potential customers that have a very strong interest in
exporting LNG."

Jordan Cove Energy Project LP and the related Pacific Connector Gas
Pipeline, or PCGP, are joint projects of partners Veresen Inc., PG&E Corp. and
Williams, Davis noted. FERC approved the LNG import project with a peak sendout
of 1.2 million Dth/d in December 2009. On June 6 of this year, the Western
Environmental Law Center asked FERC to conduct a new analysis of the LNG
project, saying the developers were considering exports. Jordan Cove and PCGP
responded that no further analysis was needed because they had not proposed
exports; such an analysis would only be necessary "if at some point in the
future [the companies] decide to seek to modify their projects to accommodate
LNG exports."

At the conference, Davis suggested the developers were considering a FERC
application for export facilities. "A dual-use facility would require FERC
approvals, but the pipeline footprint would not change," he said. "The terminal
footprint would have slight modifications."