Veresen announced that it has filed an application with the National Energy Board (NEB) for a long-term license to export natural gas from Canada to the United States. The exported natural gas will supply Veresen’s proposed Jordan Cove liquefied natural gas (LNG) export project located in Coos Bay, Oregon.
“Our NEB export license application is a key regulatory milestone in the development of our Jordan Cove LNG project,” said Don Althoff, President and Chief Executive Officer. “By providing western Canadian producers with access to large new markets, primarily utilizing existing natural gas infrastructure, our LNG project is well-positioned to create long-term value for the energy industry. In addition, customers of Jordan Cove will benefit from our tolling model and maintain optionality to source natural gas from both western Canada and the U.S. Rockies.”
The NEB application requests an export volume of 1.55 billion cubic feet per day (Bcf/d) for 25 years, translating into 9 million tonnes per year (MMt/y) of export capacity from the Jordan Cove terminal. While the initial liquefaction design capacity is 6 MMt/y, an expansion to 9 MMt/y is possible.
To reach the Jordan Cove facility, western Canadian natural gas will travel via existing pipeline and gas gathering networks to the Malin trading hub located in southern Oregon. From Malin, the proposed Pacific Connector Gas Pipeline will transport natural gas to the Jordan Cove liquefaction terminal. The Pacific Connector is a 232-mile, 36-inch proposed pipeline owned equally by Veresen and The Williams Companies.
I ask Schwab and they do not know. Since they are the sole owner of Jordan Cove anything is possible. Jordan Cove will have lots of resistance but the state of Oregon could certainly use the jogs as well as the import/export fees. The neighbors of the Cove will fight this tooth and nail. No one knows how it will end. WMB does have some deep pockets and Veresen will need about 5 billion financial and lots of political support. IIMHO I think it is worth placing a few buck on the table. Up 7 out of 9 trading days plus the 8.5% dividend so odds are looking great so far. I asked Yahoo finance to track it better but so far no response.