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FERC called to deny approval of pipeline project

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Southern Oregon property owners whose rights and land have been held hostage by the proposed Pacific Connector Gas Pipeline project for almost a decade have filed legal papers with the Federal Energy Regulatory Commission (FERC). Landowners are calling on FERC to deny approval of the Pacific Connector pipeline project in the wake of the recent crash of the LNG export market and admissions that neither the Pacific Connector Pipeline nor the Jordan Cove LNG terminal have secured any customers.

The pipeline route

In response to questions by FERC, Pacific Connector admitted in a 4 November 2015 letter that it had not secured even a single pipeline customer and had only negotiated right-of- way easements on just 4.7% of the pipeline route. FERC is required to weigh both market demand and the extent of negotiated landowner easements prior to issuing a certificate of convenience and necessity that would give Pacific Connector the power of eminent domain over 600 private landowners along the pipeline route.

Market prices

Prices in the Pacific Rim LNG market the Jordan Cove and Pacific Connector projects were intended to serve have dropped more than 60% in just the last year amid a glut of global LNG supply and decreasing Asian demand. Many energy industry analysts now say new US LNG export projects are no longer viable.

Comments on FERC

黑料社淔ERC should not be putting hundreds of landowners at risk of eminent domain for a project without any proven market demand,黑料社 says the landowners黑料社 attorney Thane Tienson who has helped fight other Oregon pipelines intended for LNG export. 黑料社淚t is not surprising Pacific Connector does not have any actual customers and has made little effort to obtain landowner right-of-way easements for their project. The high-price LNG market the project was originally intended to serve has evaporated.黑料社

黑料社淓nough is enough, we have been captives in this LNG export shell game far too long. This foreign corporation is asking FERC to wager our life黑料社檚 work, our homes and our livelihoods on an LNG market where the bottom has literally fallen out,黑料社 says Klamath County landowner Deb Evans. 黑料社淭here is not one single LNG customer in place to warrant any further shareholder investment. FERC is required to examine whether Pacific Connector has any commitments for firm service in place and they do not.黑料社

Stacey McLaughlin whose property would be crossed by a mile of the proposed pipeline agrees. 黑料社淔orcing landowners to live under another decade of uncertainty when Pacific Connector has been unwilling to invest its own funds in securing the necessary easements is irrational and unjust punishment for the people who have already put their lives on hold for more than 10 years. FERC does not have a legal basis for giving the power of eminent domain to a project that would have a major impact on landowners and where there is no evidence it黑料社檚 even viable.黑料社

Evidence of LNG market crash

In their legal filing to FERC, landowners submitted evidence of the LNG market crash with recent energy industry news headlines such as: 黑料社楢sian LNG price faces steep fall黑料社, 黑料社楢sian LNG Prices Expected to Sink as Low as US$4 in Ugly Market黑料社, 黑料社楲NG Bust Could Last For Years黑料社, and 黑料社楳ost US LNG projects won黑料社檛 cross the finish line, new study says黑料社.

FERC黑料社檚 own data shows recent LNG prices in Japan and South Korea were just US$6.78 per million Btu. This is 30% below US$11 million Btu, publicly named by Jordan Cove黑料社檚 main investor many months ago as a price that would make LNG export from the Coos Bay site to Japan viable.

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Read the article online at: /project-news/11122015/ferc-called-to-deny-approval-of-pipeline-project/

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