Oregon's $6B LNG Project Hits a Major Roadblock
Construction of liquefied-natural-gas (LNG) export terminals in the Northwest appear to be stalled. On April 18, Leucadia National Corp. announced it was ceasing all development of the Oregon LNG project in Warrenton, Ore., that it began developing more than 12 years ago. The $6-billion LNG and associated pipeline project was expected to serve Asian markets. But the project faced local environmental opposition and was in a permitting dispute with the U.S. Army Corps of Engineers. Meanwhile, developers of the Jordan Cove LNG facility in Coos Bay, Ore., have asked the Federal Energy Regulatory Commission to reconsider a March decision rejecting that facility. FERC rejected the proposed project because it didn’t have any customers. Since then, Jordan Cove has signed agreements to sell about half its LNG from the $7.7-billion facility. Kiewit and Black & Veatch completed the facility’s front-end engineering and design work. In March, the U.S. Energy Dept.’s Energy Information Administration warned that proposed LNG terminals are facing global competition and uncertainty in the LNG marketplace. FERC is reviewing applications for 20 LNG export projects, most along the Gulf Coast. Six projects are now under construction in the U.S.