Veresen, Japan's Itochu Agree Key Terms for Jordan Cove Liquefaction Capacity

Veresen on Friday announced it has reached preliminary agreement with respect to certain key commercial terms with Japan’s Itochu Corporation for the long-term sale 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.

As per the preliminary agreement, Itochu will purchase 1.5 million tons per annum of natural gas liquefaction capacity for an initial term of 20 years. This agreement is subject to the negotiation of a mutually acceptable, definitive liquefaction tolling agreement, which Veresen and Itochu will continue to work together to conclude, Veresen said in a statement published on its website.

Itochu will be the second Japanese customer to sign a long-term deal. Last month JERA Co., Inc, agreed to buy least 1.5 million tons per annum of natural gas liquefaction capacity for an initial term of 20 years. 

“In conjunction with the agreement between Veresen and JERA Co., Inc., announced on March 22nd, Veresen has now concluded key commercial terms in respect of at least 3 million tons per annum of natural gas liquefaction capacity,” the company stated. 

Veresen is currently negotiating for the remaining liquefaction capacity with other parties.

The Jordan Cove LNG project is expected to have an initial design liquefaction capacity of approximately 6.0 million tons per annum, or approximately 1 billion cubic feet of natural gas per day.