Oregon LNG announced today that it has filed an application with the Federal Energy Regulatory Commission (FERC) seeking the approval necessary to site, construct and operate a bi-directional liquefied natural gas (LNG) terminal with both import and export capability in Warrenton, Oregon. The project, which also includes an affiliated interstate natural gas pipeline that will interconnect with and bolster the capacity of existing pipeline facilities, would enable worldwide shipment of high-value natural gas produced in Canada and already earmarked for export. In addition to facilitating the delivery of natural gas supplies to isolated coastal communities as well as trading partners worldwide, the bi-directional project would also support the emerging conversion to cleaner burning natural gas for trucks, railroads, barges, ferries, and ocean going vessels.
If constructed, the project will represent the largest privately funded development in Oregon’s history. The project is anticipated to result in $6.3 billion in direct spending during construction, providing the state with high-value jobs and tax revenues.
Expected economic benefits will reach nearly $60 million annually in state and local property tax revenues over the life of the project and will provide nearly 3,000 jobs during construction and an estimated 1,550 direct and indirect or induced permanent jobs. In addition, the project will increase the reliability of natural gas supplies for the Pacific Northwest.
Oregon LNG has commitment letters with several construction unions in the Northwest, agreeing to hire contractors who use union labor. In addition, certain contracting funds are reserved for local small business, and women and minority owned contractors. According to Doug Tweedy, Chief Executive Officer for the NW Regional Council of Carpenters, “This project not only will create thousands of construction jobs, it will also provide a huge boost to the north coast economy.”
The FERC filing follows more than eight years of environmental studies and over 250 meetings with local, state, federal, and tribal agencies. Oregon LNG’s FERC application must still undergo additional environmental review and FERC approval. Additionally, the project must comply with all applicable permitting requirements and regulations in order to be implemented.
The application filed last Friday also identifies a new route for Oregon LNG’s affiliated pipeline, owned by Oregon Pipeline, LLC, from the terminal to the existing north-south interstate natural gas pipeline. This new pipeline route reflects significant modification from the originally proposed route, and reduces impacts to environmentally sensitive lands as well as the number of private land owners impacted.
A final investment decision in the project remains subject to board approval by Leucadia National Corporation.
About Oregon LNG
LNG Development Company, LLC (d/b/a Oregon LNG) is a subsidiary of Leucadia National Corporation. Oregon LNG is a company 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 Oregon Pipeline
Oregon Pipeline Company, LLC is an indirect wholly-owned subsidiary of Leucadia National Corporation and is an affiliate of Oregon LNG. Oregon Pipeline, LLC is proposing the construction and operation of an 86.8-mile long pipeline, connecting the Oregon LNG terminal with the Northwest Pipeline in Woodland, Washington. For more information about Oregon Pipeline, please visit www.oregonpipelinecompany.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 beef processing, manufacturing, gaming entertainment, real estate activities, and medical product development. For more information about Leucadia National Corporation, please visit www.leucadia.com.
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