Veresen Concludes Key Terms with JERA for Jordan Cove Liquefaction Capacity
Veresen Concludes Key Terms with JERA for Jordan Cove Liquefaction Capacity
CALGARY, AB--(Marketwired - March 22, 2016) - Veresen Inc. ("Veresen")
(VSN.TO) is pleased to announce that it has finalized the key commercial terms with JERA Co., Inc. ("JERA") in respect of the long-term provision to JERA of natural gas liquefaction capacity at the Jordan Cove LNG facility. Veresen is developing the Jordan Cove LNG facility in the International Port of Coos Bay in Oregon, USA.
The preliminary agreement signed today covers the purchase by JERA of at least 1.5 million tonnes per annum of natural gas liquefaction capacity for an initial term of 20 years. This agreement is subject to customary conditions including the execution of a detailed liquefaction tolling agreement, which Veresen and JERA will continue to work together to conclude, and the project obtaining applicable regulatory approvals. Negotiations for the remaining liquefaction capacity are ongoing with other parties.
JERA, a joint venture established on April 30, 2015 by Tokyo Electric Power Company, Incorporated ("TEPCO") and Chubu Electric Power Co., Inc. ("Chubu Electric"), was created to implement a comprehensive alliance among its two shareholders covering the entire energy supply chain, from upstream investments and fuel procurement through to power generation. Upon the integration of TEPCO's and Chubu Electric's fuel procurement businesses into JERA, expected to occur in July 2016, JERA will be the world's largest purchaser of liquefied natural gas by volume.
"This agreement signals strong market support for the Jordan Cove LNG project from the world's largest LNG buyer and represents a significant step forward in the project's development," said Don Althoff, President and CEO of Veresen. "We are pleased to have JERA as our first customer and look forward to deepening our relationship with them as we continue to progress Jordan Cove LNG."
The Jordan Cove LNG facility is expected to have an initial design liquefaction capacity of approximately 6.0 million tonnes per annum, or approximately 1 billion cubic feet of natural gas per day. For further information about the Jordan Cove LNG project, please visit www.jordancovelng.com.