Letter to Trump: Move quickly on Jordan Cove project

A priority for President Donald J. Trump should be to appoint two Republicans to the Federal Energy Regulatory Commission, which could revive the Jordan Cove project, nine members of the U.S. House said in a letter sent Wednesday to the president.

The Jordan Cove project to build an export terminal for liquefied natural gas, as well as the associated Pacific Connector pipeline from Wyoming to the Oregon coast, should rank high on the president’s to-do list, said the letter written by U.S. Rep. Scott Tipton, R-Colo., and signed by seven other western Republicans and Rep. Kurt Schrader, D-Ore.

“The Jordan Cove Project and its associated gas production activities will create many well-paying jobs in western communities that desperately need and will happily welcome them,” the letter said, “It will generate vast revenues for state and local coffers to fund vital infrastructure construction and maintenance, in addition to revenue for the federal Treasury; and it will supply key allies with American energy developed by the American worker in the most environmentally responsible way.”

The three current members of the commission are Democrats who turned town the $7.3 billion Jordan Cove project last spring, but kept open the file for reconsideration. In December, the commission said it wouldn’t reconsider its action. Veresen Inc., which is proposing the project, has said it would refile.

The commission seats most recently held by Republicans have been vacant since 2015, the congressional letter said.

Much has changed since the commission first ruled against the project, the representatives noted.

While the commission originally rejected the project saying that proponents had failed to demonstrate any need, agreements to sell liquefied natural gas to buyers in Japan could account for 75 percent of the pipeline capacity and 50 percent of the terminal’s, the letter said.

During the same time, the U.S. Geological Survey said that the Piceance Basin in Colorado contains 66 trillion cubic feet of natural gas, more than 40 times the previous estimate.

“It is therefore quite clear that not only is there a significant market demand for LNG from the Jordan Cove project, but that our nation has the resources to easily meet that demand without jeopardizing our own energy needs,” the letter said.

Other signers of the letter include Ken Buck and Doug Lamborn of Colorado, Jason Chaffetz, Mia Love and Chris Stewart of Utah, Liz Cheney of Wyoming and Paul Gosar of Arizona.


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At the end of a 2-day summit in Japan in December, Russian President Vladimir Putin and Japanese Prime Minister Shinzo Abe signed over 80 economic deals. Twenty-three of those deals were energy agreements signed by Russian state-owned oil firm Rosneft and three Japanese companies. The multi-billion-dollar agreements include joint offshore explorations, construction of a second LNG plant in Sakhalin, construction of the Sakhalin-Hokkaido natural gas pipeline, and financing to boot.

Noting Russia’s “reliable” LNG supplies, in excess of 8% of Japan’s needs, Putin said: “Energy is a strategic area of Russia-Japan cooperation. The implementation of these large-scale projects will supply Japanese consumers with additional LNG and power at affordable prices and at the shortest distances.”

With all these well-planned and financially pre-approved oil & gas developments on the horizon to bring Russian gas via pipeline to Japan’s doorstep, it’s hard to imagine that any Japanese companies — or even Korean companies — would be interested in signing long-term agreements for expensive LNG shipped from an invisible plant in Oregon that not only hasn’t been built yet, but is now stuck in reboot.

Currently Japan’s Jera Co. and Taiwan’s CPC Corp. are only buying 76 percent of LNG supply from producers in Qatar, Australia, and Malaysia. And as time passes, the economics of the Jordan Cove project continue to fade. When the export terminal was proposed in May 2013, the differential between landed Japanese LNG prices and U.S. natural gas prices was $12.45. Today, it has fallen to $3.25.

So there’s that.

Jordan Cove has and always will be taxpayer welfare for the Colorado signers of this letter supported by the NOW asst. Majority Leader Ray Scott. 
Let there be no mistake here….The Jordan Cove project is the blatant theft of the People’s oil and gas.  The “jobs” will be short lived, as is usual for these projects. The costs will inflate and who do YOU think will pay for that?  If our resources are exported, how much do YOU think the your natural gas bill will go up.  If you think you will continue to pay what you do now, you have your head in the proverbial hole.

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