Oregon LNG Secures Department of Energy Approval for Global LNG Exports
July 31 2014 - 3:32PM
Business Wire
Authorization of LNG exports from Warrenton,
Oregon, secures a critical licensing milestone, opening markets in
Eastern Europe, South America, and the Asia-Pacific
Oregon LNG today announces that it has received authorization
from the U.S. Department of Energy (DOE) to export liquefied
natural gas (LNG) to countries that do not have a Free Trade
Agreement (FTA) with the U.S. Today’s approval comes
notwithstanding recently announced modifications to DOE’s licensing
review process and adds strong momentum to Oregon LNG’s project,
which is one of the most advanced in the review process conducted
by the Federal Energy Regulatory Commission (FERC).
“We applaud the DOE decision which places Oregon LNG in a very
small group of projects in North America that have received
conditional DOE approval for non-FTA exports,” said Peter Hansen,
Chief Executive Officer of Oregon LNG. This approval allows the
largest Asian buyers to purchase from Oregon LNG, which already has
authorization to ship to any of the twenty nations with which the
U.S. has a FTA. “DOE approval is an important step towards the
development of a project that will improve energy security for many
of our country’s key trading partners while simultaneously
providing Oregon with significant economic benefits and growth
opportunities,” explains Hansen.
“Oregon is one of the nation’s most trade-dependent states, with
trade supporting almost 500,000 Oregon jobs in 2012,” Hansen noted.
“The Oregon LNG project will strengthen Oregon’s overall economy
and its position in international trade.” The $6.3 billion project
will create more than 3,000 direct construction jobs with specific
amounts of project spending to be directed towards small, local
businesses. Also, the project has agreed to create new
opportunities for minority-, women-, and veteran-owned businesses.
More than 150 highly-paid workers will run the plant on an ongoing
basis, and the Oregon LNG project will create more than 1,500
additional indirect and induced jobs in the region.
DOE FTA approval is a critical milestone in the multi-step
approval process for licensing of an LNG project. The project has
filed an application at FERC and is currently under NEPA review.
Final approval by FERC and DOE, as well as other approvals, are
necessary before the project can commence construction.
The Oregon LNG operation will be the state’s largest property
taxpayer, contributing approximately $60 million annually in new
property tax revenues to help substantially increase funding for
transportation infrastructure, education and other essential public
services.
Canada's National Energy Board recently authorized Oregon LNG to
source from Canada, the majority of the natural gas to be exported
through the proposed terminal, which means that the Warrenton
facility could be operated with little or no impact on the price or
supply of U.S. natural gas. The Oregon LNG project will have the
lowest pipeline transportation cost from Canadian gas fields of any
West Coast project.
LNG from US and Canadian West Coast projects will enjoy
transportation costs to markets in North Asia that are only about
one-third of the transportation cost from projects located on the
Gulf of Mexico.
Project Description and Update
The site for Oregon LNG’s export terminal is adjacent to the
federally-maintained Columbia River shipping channel, located on an
existing man-made peninsula that has long been reserved for use by
heavy, marine-dependent industries. The project will require the
shortest connecting pipeline of any LNG project on the West Coast
and, with electric power supplied mostly from hydroelectric and
wind resources, it will also have one of the lowest carbon
footprints of any proposed LNG project in North America.
Oregon LNG is fully committed to meeting or exceeding all
applicable safety and environmental standards. The company remains
actively engaged in regulatory proceedings on both state and
federal levels and is awaiting the conclusion of reviews by the
Federal Energy Regulatory Commission and Oregon’s Department of
Land Conservation and Development. The overall approval process is
expected to be completed before the end of 2015.
About Oregon LNG
LNG Development Company, LLC (doing business as Oregon LNG) is a
subsidiary of Leucadia National Corporation. Oregon LNG is
committed to the safe, efficient, and environmentally responsible
importation and exportation of natural gas in the form of LNG. For
more information about Oregon LNG, please visit
www.oregonlng.com.
About Leucadia National Corporation
Leucadia National Corporation (NYSE: LUK) is a diversified
holding company engaged through its consolidated subsidiaries in a
variety of businesses, including investment banking and capital
markets, beef processing, manufacturing, oil and gas exploration
and production, energy projects and asset management. The Company
also owns equity interests in operating businesses including a
commercial mortgage banking and servicing business, automobile
dealerships, a real estate development business and a wireless
broadband services provider in Italy. For more information about
Leucadia National Corporation, please visit www.leucadia.com.
Oregon LNGPeter Hansen, 503-298-4966
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