Project Description

Oregon LNG proposes to construct, own, and operate a liquefied natural gas import facility (also known as a re-gasification facility) located on the Skipanon Peninsula in Warrenton, Oregon. The Oregon LNG Project has been designed to include a marine receiving terminal, three full containment 160,000 cubic meter LNG storage tanks, and facilities to support ship berthing and cargo offloading.

The project will use ambient air to convert the LNG back to its vapor state prior to its delivery into the pipeline system. The facility will interconnect with gas pipelines in the Molalla area.

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The project will provide a means for much needed natural gas to safely reach homes, businesses, electrical generating plants and industries in the Pacific Northwest Region as well as other parts of the Western United States. The area served by the Oregon LNG Project has high demand and limited supply to meet the growing demand for natural gas in the region. The general trend in the Pacific Northwest, along with the rest of the United States, is continued growth in the overall natural gas market. This market area relies solely on increasingly constrained domestic and Canadian supplies from distant areas and long-haul pipelines. Meeting the growing demand is a challenge that is only addressed by significant expansion to the interstate pipeline systems bringing gas to the region or placement of facilities like the Oregon LNG Project in close proximity to the demand centers for direct supply of natural gas into those markets.

The project is currently under development. There are many permits and approvals required by federal, state, and local agencies before construction can begin. Public participation in the permitting process is strongly encouraged. Construction could begin as early as late-2009, with a commercial operation date in late-2012.
history

Project History

Development activities for the Oregon LNG Project, formerly known as Skipanon Natural Gas Facility, were started in early 2004 by initiating conversations with local leaders about the feasibility of building such a facility in the area.

After receiving favorable responses, the project team leased a 94-acre site from the Port of Astoria and initiated a lengthy local site re-zoning process. This process involved significant public input and participation and the project site was eventually re-zoned to allow for the building of an LNG facility.

The project management team along with our funding partner acquired the project from Calpine Corporation in January of 2007.
local

Oregon LNG Project – A local solution

The Oregon LNG Project is designed to help serve the growing need for natural gas supplies in the Pacific Northwest region as well as the entire Western United States. At present, the forecasted demand growth of natural gas cannot be met with the existing natural gas pipeline infrastructure. As a result, this part of the country currently experiences high price volatility and increasing supply challenges. Our Region receives its natural gas from the Gulf of Mexico, the Rocky Mountains and Canada. Due to the dwindling supply combined with demand growth, constraints on the existing long-distance pipeline system may become a critical bottleneck. To reduce the negative effects created by this situation, there is a need to add new natural gas supplies to the United States.

The Oregon LNG Project is a solution for bringing additional supplies of natural gas to the region in a reliable, safe, and cost-effective manner. To accomplish this, the Project intends to receive its LNG from reputable international sources that will transport the cargo in vessels designed to specifically handle the natural gas that has been converted to LNG through a cooling and condensing process that occurs where the gas originates. Upon receipt, Oregon LNG will convert the LNG to natural gas so it can be delivered to homes, electrical generating plants, and industry in the region and provide a new reliable source of supply.
terminal

Oregon LNG Terminal

The proposed Oregon LNG Project will be located on the east side of the Skipanon channel on the Skipanon Peninsula in Warrenton, Oregon which is currently owned by Oregon Department of State Lands and leased to the Port of Astoria, which is in turn leased to Oregon LNG for 65 years. The approximately 96 acre project site consists of a parcel of land located between the Skipanon Waterway and Youngs Bay.

The following is a quick summary of the Oregon LNG Project Specifications
 

Proposed Capacity:	1 BCF/day, expandable to 1.5 BCF/day
Tanks:	3 x 160,000 m3
Heat Source:	Ambient air
C3+ Separation:	Permitted on-site
Channel Depth:	43 ft. existing
Channel Width:	600 ft. existing
Berth:	Up to 200,000 m3 ship; minimal dredging required
Site Location:	46 deg 10' 45" N; 123 deg 54' 25" W;
Site Control:	65-year lease of 96-acre site acquired
Local Jurisdiction:	City of Warrenton
State and Local Permits:	Local Oregon land use process completed

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timeline

Project Timeline

The Federal Energy Regulatory Commission (FERC) is the lead federal agency and has final approval on all technical aspects of the Oregon LNG Project. Construction and operation of Oregon LNG can only move forward when all FERC, state and local approvals are in place. A summary of key project milestones are as follows:

FERC Pre-Filing Application to be submitted by May 2007

FERC Certificate to be issued by early 2009

Start Project Construction - Late 2009

Start deliveries to customers by 3rd Quarter of 2012