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GLNG AMERICAS GLNG

US Secretary of Energy approves

Jordan Cove LNG exports

POLICY THE US Secretary of Energy Dan Brouillette Corp., will have the authority to export up to 1.08
issued a final long-term order on July 8 author- bcf ($30.6mn cubic metres) per day per day of
ising the export of domestically produced LNG natural gas as LNG. The project’s natural gas will
from the proposed Jordan Cove LNG Terminal be sourced from Canada and the US and will be
in Coos Bay, Oregon. liquefied at the Jordan Cove LNG Terminal.
The decision follows the Department of Ener- The LNG will be exported by ocean-going
gy’s (DOE) 2014 conditional approval of exports vessel to any country with which the United
from the Terminal. States does not have a free trade agreement and
In March 2020, the Federal Energy Regula- with which trade is not prohibited by US law.
tory Commission (FERC) authorised the siting, “As we work to overcome the [coronavirus]
construction and operation of the Jordan Cove COVID-19 pandemic, LNG exports are going to
LNG Terminal and the related Pacific Connector be one of the building blocks toward the United
Pipeline. States’ economic recovery,” said the DOE’s Assis-
“Today’s export authorisation for Jordan tant Secretary for Fossil Energy Steven Winberg.
Cove, the first US West Coast LNG project, will “The US has exported LNG to 38 countries;
ease access to further position the US as a top with this authorisation to Jordan Cove, the US
supplier of LNG around the world,” said Secre- can look to increase that number with expanded
tary Brouillette. geographic coverage for LNG exports into key
“Today’s issuance to Jordan Cove serves importing markets in Asia, providing enhanced
to further expand opportunities for US LNG economic opportunities both here in the US and
abroad, particularly in the growing markets of globally.”
Asia, and encapsulates what the Trump Admin- The US is currently in its fourth consecutive
istration has been working hard on for the past year as a net exporter of natural gas, and it has
three years – providing reliable, affordable and become one of the top global exporters of LNG.
cleaner-burning natural gas to our allies around If built to its authorised capacity, Jordan
the world.” Cove, including the Pacific Connector Pipeline,
Under the order, Jordan Cove Energy Project, is expected to generate up to $100mn in state and
which is owned by Canada’s Pembina Pipeline local tax revenue annually.™

ASIA

Importer JERA carries LNG losses

PERFORMANCE JAPAN’S JERA said this week that falling power than halved so far this year, and are significantly
demand and its oil-indexed supply commit- below the average price Japanese buyers pay
ments had caused it to write off billions of yen in under oil-linked contracts.
expected revenue from LNG sales in the finan- The sudden fall in demand for LNG exposed
cial year to March 2020. Japan’s importers to higher priced oil-linked
JERA president Satoshi Onoda said on July 9 long-term contracts, which contrast with low
that slumping prices meant it expected the one- spot prices caused by oversupply and the coro-
off losses to continue throughout 2020, despite navirus (COVID-19) inspired falling demand.
trying to hedge its supply commitments, Reuters JERA’s losses include more than JPY10bn
reported. ($90mn) from the resale of LNG cargoes for the
“The coronavirus pandemic reduced electric- past financial year and the current one. It also
ity demand by 12% in April and May from what forecasts further losses in future as it is com-
we had anticipated earlier,” Onoda said. mitted to making purchases under long-term
To cope with falling fuel demand from the contracts.
weaker electricity sales, JERA has been taking However, JERA, which is owned by Chubu
measures to cushion LNG losses. Electric Power and TEPCO, posted a net profit
“We have made adjustments, including of JPY168.5bn ($1.6bn) for the year to March, up
changing shipping schedules and reselling sup- from JPY22.5bn ($209mn) in 2018-19.
plies to third parties, so that our LNG invento- The company said its profits were driven by
ries would not overflow until autumn,” Hisahide its generation business, which it acquired in 2019
Okuda, JERA’s director said. by buying power stations run by TEPCO and
Asian spot LNG prices LNG-AS have more Chubu Electric.™

P10 www. NEWSBASE .com Week 27 10•July•2020