Press release from Business Wire
Oregon LNG Secures Department of Energy Approval for Global LNG Exports
<p class='bwalignc'> <i>Authorization of LNG exports from Warrenton, Oregon, secures a critical licensing milestone, opening markets in Eastern Europe, South America, and the Asia-Pacific</i> </p>
Thursday, July 31, 2014
Oregon LNG Secures Department of Energy Approval for Global LNG Exports15:32 EDT Thursday, July 31, 2014
WARRENTON, Ore. (Business Wire) -- Oregon LNG today announces that it has received authorization from the U.S. Department of Energy (DOE) to export liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the U.S. Today's approval comes notwithstanding recently announced modifications to DOE's licensing review process and adds strong momentum to Oregon LNG's project, which is one of the most advanced in the review process conducted by the Federal Energy Regulatory Commission (FERC).
“We applaud the DOE decision which places Oregon LNG in a very small group of projects in North America that have received conditional DOE approval for non-FTA exports,” said Peter Hansen, Chief Executive Officer of Oregon LNG. This approval allows the largest Asian buyers to purchase from Oregon LNG, which already has authorization to ship to any of the twenty nations with which the U.S. has a FTA. “DOE approval is an important step towards the development of a project that will improve energy security for many of our country's key trading partners while simultaneously providing Oregon with significant economic benefits and growth opportunities,” explains Hansen.
“Oregon is one of the nation's most trade-dependent states, with trade supporting almost 500,000 Oregon jobs in 2012,” Hansen noted. “The Oregon LNG project will strengthen Oregon's overall economy and its position in international trade.” The $6.3 billion project will create more than 3,000 direct construction jobs with specific amounts of project spending to be directed towards small, local businesses. Also, the project has agreed to create new opportunities for minority-, women-, and veteran-owned businesses. More than 150 highly-paid workers will run the plant on an ongoing basis, and the Oregon LNG project will create more than 1,500 additional indirect and induced jobs in the region.
DOE FTA approval is a critical milestone in the multi-step approval process for licensing of an LNG project. The project has filed an application at FERC and is currently under NEPA review. Final approval by FERC and DOE, as well as other approvals, are necessary before the project can commence construction.
The Oregon LNG operation will be the state's largest property taxpayer, contributing approximately $60 million annually in new property tax revenues to help substantially increase funding for transportation infrastructure, education and other essential public services.
Canada's National Energy Board recently authorized Oregon LNG to source from Canada, the majority of the natural gas to be exported through the proposed terminal, which means that the Warrenton facility could be operated with little or no impact on the price or supply of U.S. natural gas. The Oregon LNG project will have the lowest pipeline transportation cost from Canadian gas fields of any West Coast project.
LNG from US and Canadian West Coast projects will enjoy transportation costs to markets in North Asia that are only about one-third of the transportation cost from projects located on the Gulf of Mexico.
Project Description and Update
The site for Oregon LNG's export terminal is adjacent to the federally-maintained Columbia River shipping channel, located on an existing man-made peninsula that has long been reserved for use by heavy, marine-dependent industries. The project will require the shortest connecting pipeline of any LNG project on the West Coast and, with electric power supplied mostly from hydroelectric and wind resources, it will also have one of the lowest carbon footprints of any proposed LNG project in North America.
Oregon LNG is fully committed to meeting or exceeding all applicable safety and environmental standards. The company remains actively engaged in regulatory proceedings on both state and federal levels and is awaiting the conclusion of reviews by the Federal Energy Regulatory Commission and Oregon's Department of Land Conservation and Development. The overall approval process is expected to be completed before the end of 2015.
About Oregon LNG
LNG Development Company, LLC (doing business as Oregon LNG) is a subsidiary of Leucadia National Corporation. Oregon LNG is 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 Leucadia National Corporation
Leucadia National Corporation (NYSE: LUK)is a diversified holding company engaged through its consolidated subsidiaries in a variety of businesses, including investment banking and capital markets, beef processing, manufacturing, oil and gas exploration and production, energy projects and asset management. The Company also owns equity interests in operating businesses including a commercial mortgage banking and servicing business, automobile dealerships, a real estate development business and a wireless broadband services provider in Italy. For more information about Leucadia National Corporation, please visit www.leucadia.com.
Peter Hansen, 503-298-4966