Denied: Proposed LNG Export and Gas Pipeline in Oregon Rejected by FERC

The Federal Energy Regulatory Commission denied a contentious $7.5 billion Liquefied Natural Gas export facility, pipeline, and power plant in Coos Bay, Ore., which had received environmental clearance.

2 minute read

March 13, 2016, 11:00 AM PDT

By Irvin Dawid


"In a decision that stunned supporters and critics alike, federal regulators Friday [March 11] rejected plans for a massive liquefied natural gas [LNG] export terminal in Coos Bay, saying applicants had not demonstrated any need for the facility," writes Ted Sickingera business investigative reporter for The Oregonian whose coverage includes energy.

Last September, the Federal Energy Regulatory Commission (FERC), "an independent agency that regulates the interstate transmission of electricity, natural gas, and oil," approved the final environmental impact statement for the Jordan Cove LNG and Pacific Connector [Gas Pipeline Project].

Reason for denial of application

Similar to a major judicial setback encountered by Calgary-based TransCanada Corp. in its application to build its Keystone XL pipeline through Nebraska, it was not environmentalists but landowners that frustrated energy developer Veresen, Inc., also based in Calgary, Alberta.

"Specifically, the FERC stated that the public benefits of Pacific Connector do not outweigh the potential for adverse impacts on landowners and communities," notes Veresen's press release. "Jordan Cove LNG and Pacific Connector will file a request for a rehearing of the decision."

Sickinger clarified the reason for FERC's rejection:

Regulators said they were required to balance the need for any project against any adverse impacts it would have on landowners or the environment. The need for Jordan Cove was based entirely on demand for natural gas from customers in Asia, and with those markets in upheaval, Jordan Cove's backers have yet to demonstrate that the demand exists.

Sickinger videos his interview with a rancher, with magnificent views of his property, who had objected to the pipeline, the use of eminent domain to build on his land, and the fact that the natural gas would be exported rather than used domestically.

The [Federal Energy Regulatory] commissioners noted the landowners' concerns with land devaluation, loss of revenue and harm to business operations, including timber, agriculture and oyster harvesting.

"Because the record does not support a finding that the public benefits of the Pacific Connector Pipeline outweigh the adverse effects on landowners, we deny Pacific Connector's request...to construct and operate the pipeline," the commission's order said. 

Without a pipeline, it was impossible to demonstrate any public benefit to the LNG terminal, so the commission denied that application. too.  

Opponents of the pipeline and export facility, including the local Citizens Against LNG were delighted with the outcome, but were warned that Veresen, Inc and its pipeline collaborator, the Williams Partners "are free to reapply in the future, and the commission would consider their plans if they can demonstrate 'a market need' for their product," writes Sickinger.

Friday, March 11, 2016 in The Oregonian

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Rendering of Shirley Chisholm Village four-story housing development with person biking in front.

San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning

SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.

June 8, 2025 - Fast Company

Bird's eye view of half-circle suburban street with large homes.

In More Metros Than You’d Think, Suburbs are Now More Expensive Than the City

If you're moving to the burbs to save on square footage, data shows you should think again.

30 minutes ago - Investopedia

Color-coded map of labor & delivery departments and losses in United States.

The States Losing Rural Delivery Rooms at an Alarming Pace

In some states, as few as 9% of rural hospitals still deliver babies. As a result, rising pre-term births, no adequate pre-term care and "harrowing" close calls are a growing reality.

June 15 - Maine Morning Star

Street scene in Kathmandu, Nepal with yellow minibuses and other traffic.

The Small South Asian Republic Going all in on EVs

Thanks to one simple policy change less than five years ago, 65% of new cars in this Himalayan country are now electric.

June 15 - Fast Company