Oregon LNG Project Dealt Permitting Setback

Canadian Pembina Pipeline’s Jordan Cove LNG project – and its companion Pacific Connector Gas Pipeline – have been dealt another regulatory setback with a May 6 ruling from Oregon’s Department of Environmental Quality (DEQ) denying a May 2018 application for a Section 401 water quality certification (WQC).

“DEQ does not have a reasonable assurance that the construction and operation of the project will comply with applicable Oregon water quality standards,” the state agency said in a letter to Jordan Cove. “DEQ’s decision, however, is made without prejudice.”

Jordan Cove and Pacific Connecter Gas may reapply for the certification, DEQ said, adding that it will consider the new application if it “is responsive to the bases for denial in this decision.”

Last week, Pembina Pipeline advised in its quarterly earnings report that it would be slowing work on Jordan Cove while it pursued regulatory approvals, including a pair of critical state permits, one of which was the WQC. That permit, Pembina said, was not expected until near the end of this year.

“Today we were advised by the Oregon Department of Environmental Quality of its decision to deny our Section 401 permit without prejudice, based on procedural concerns DEQ has in relation to recent court decisions,” Pembina said in a statement released May 6. “Pembina’s management team is working to better understand this decision and its impacts and will communicate updates when appropriate.”

The DEQ originally intended to hand down its decision in September, but accelerated that timeline to ensure it did not miss the one-year certification period required by the US Corp of Army Engineers. Missing that deadline – May 22, 2019 under Pembina’s initial application – would have meant that Oregon was waiving its right to issue the certificate.