Oregon denies water permit for Pembina’s Jordan Cove LNG export terminal

The Oregon Department of Environmental Quality (DEQ) have denied a water quality certification for Canadian energy company Pembina Pipeline Corp’s proposed USD $10 billion Jordan Cove liquefied natural gas (LNG) export terminal.

The DEQ said it originally planned to make a decision on certification, one of several federal and state approvals needed before Pembina can build the project, in September, but accelerated that schedule to ensure it does not unintentionally waive Oregon’s authority to review the water quality impacts of the proposed project.

The DEQ said its decision was made “without prejudice,” meaning Pembina may reapply for certification and submit additional information that could result in a different decision. They said they denied Pembina’s request due to the expected effects of construction and operation of the proposed pipeline on water temperature and sediment in streams, among other things. Pembina said its management team was “working to better understand this decision and its impacts and will communicate updates when available.”

Jordan Cove is one of more than three dozen LNG export projects under development in the United States, Canada, and Mexico. Analysts have said they expect only a handful or so of the plants to actually get built over the next decade. Jordan Cove is designed to produce 7.5 million tonnes per annum (MTPA) of LNG, equivalent to around 1 billion cubic feet per day (bcfd) of natural gas. Earlier in the week, Pembina delayed Jordan Cove’s planned start up by a year to 2025.

American LNG export capacity is expected to rise to 7.4 bcfd by the end of 2019 and 10.0 bcfd by the end of 2020 from 5.2 bcfd now. From the start of 2016 to the end of 2018, the United States quickly became the third biggest LNG exporter in the world by capacity,