Seaports Magazine - Fall 2017 - 16

PHOTO COURTESY: JORDAN COVER LNG

PHOTO COURTESY: JORDAN COVER LNG

Port of Coos Bay LNG carrier at sea.
attempts to secure FERC permitting will
be successful," Burns said. He hopes for
approval within 18 months and construction shortly thereafter. A key factor is that
two "offtake" customers have been secured
already. Burns predicts that 100 percent
of offtake will be secured by year end.
The LNG market via Coos Bay is Asia; the
volume already accounted for is destined
for Japan.
The Jordan Cove Energy Project will
be built within the port by Calgarybased energy company Veresen. Natural
gas will be transported to the terminal
by the Pacific Connector Gas Pipeline.
The facility will include containment
storage tanks and a single marine berth

North American Shift to
LNG Export Position
LNG prices in North America became
economical in recent years due to
the boom in natural gas production
facilitated by hydraulic fracturing.
Technology is unlocking previously less
accessible reserves. Whereas North
America imported most of its natural
gas up until recently, it began to export
in 2016 and is now looking to natural
gas to help secure its energy future.
In "Outlook for Energy: A View to
2040" issued in late 2016, ExxonMobil
forecast that North America will
become the world's largest natural gas
exporter by 2040, and that it is likely
to become a significant net exporter of
oil by 2025. That will mean a radical
shift in the composition, direction and
volume of energy cargoes for ports.

16

AAPA SEAPORTS MAGAZINE

Port of Coos Bay project overview.
designed to accommodate about two vessels per week.
Burns said, "LNG is an up and coming
commodity. We plan to be a major part
of it." Pegging its aspirations on its deep
water (the "largest between San Francisco
and Seattle"), the port is working hard to
be an increasingly important part of the
Pacific equation. It is already gauging
LNG-related opportunities such as an
LNG fueling depot needed for tugboats
and other vessels. Burns is also hopeful
that LNG will offer a critical mass that will
spur greater development of LPG, CNG or
similar cargoes.
Coos Bay has invested substantial
resources in preparing for LNG, including roads, utilities, security and similar
infrastructure in the North Spit area of the
port where Jordan Cove is planned. "Part
and parcel is the creation of the channel deepening project. We have a current
channel depth of 37 feet and width of
300 feet and will go to 45 feet by 450 feet.
LNG will be a prime beneficiary. This is
not funded by the federal government.
It will be a 3P - with the state, port and
potential users. A 37 foot draft is enough
but we would have to play the tides and
more is better for LNG and other users,"
said Burns.
A recent port investment in a short line
railroad that ties marine facilities into UP
and BNSF gives Coos Bay reach into the
U.S., Canada and Mexico - the rail infrastructure will help with the construction
project and has the potential to help build
other cargo. Burns said, "We look at this
as a springboard for other opportunities
to develop." He was careful to point out,
"LNG for us is but a part of our future. We

"One of the key
challenges in creating
small-scale LNG
infrastructure is the
need for harmonized
investments and risk
allocation throughout the
value chain."

-Margaret Kaigh Doyle,
Eagle LNG Partners, LLC

have this unique opportunity - we have a
lot of Greenfield land. We plan to build
things for the future and not build for the
past." He said that the ability to start fresh
and not be burdened by legacy terminals,
with their built-in inefficiencies, is a plus.
Coos Bay plans to build its book of business
using assets that incorporate new technology and automation and environmental
stewardship.

Delving into the LNG
Supply Chain
North American seaports with strategic locations appear to be off to a running
start in building value from LNG. They
are invariably finding that LNG business
is predicated on a commitment to clean
energy, communities and customers, and
that it calls for no small commitment of
time and other resources.
As seaports delve into the LNG supply
chain, they are rapidly reeling in new tenants, bunkering business, and high-volume
cargo, but more opportunities await. The
potential is vast.  ●



Table of Contents for the Digital Edition of Seaports Magazine - Fall 2017

AAPA Headquarters
From the President's Desk
Seizing LNG Supply Chain Opportunities
Find Your Niche
The Power of One, Collaboration by Many
Bringing the Outside In
Accelearating the Future
Power Shift: In the Energy Sector, Change Is the Only Constant
Strengthening U.S. Ports to Support Increasing Freight and Transportation
Port Partnerships for Strategic Positioning and Success
Index of Advertisers
Seaports Magazine - Fall 2017 - Intro
Seaports Magazine - Fall 2017 - bellyband1
Seaports Magazine - Fall 2017 - bellyband2
Seaports Magazine - Fall 2017 - cover1
Seaports Magazine - Fall 2017 - cover2
Seaports Magazine - Fall 2017 - 3
Seaports Magazine - Fall 2017 - 4
Seaports Magazine - Fall 2017 - 5
Seaports Magazine - Fall 2017 - AAPA Headquarters
Seaports Magazine - Fall 2017 - 7
Seaports Magazine - Fall 2017 - From the President's Desk
Seaports Magazine - Fall 2017 - 9
Seaports Magazine - Fall 2017 - Seizing LNG Supply Chain Opportunities
Seaports Magazine - Fall 2017 - 11
Seaports Magazine - Fall 2017 - 12
Seaports Magazine - Fall 2017 - 13
Seaports Magazine - Fall 2017 - 14
Seaports Magazine - Fall 2017 - 15
Seaports Magazine - Fall 2017 - 16
Seaports Magazine - Fall 2017 - 17
Seaports Magazine - Fall 2017 - 18
Seaports Magazine - Fall 2017 - Find Your Niche
Seaports Magazine - Fall 2017 - 20
Seaports Magazine - Fall 2017 - 21
Seaports Magazine - Fall 2017 - 22
Seaports Magazine - Fall 2017 - 23
Seaports Magazine - Fall 2017 - 24
Seaports Magazine - Fall 2017 - 25
Seaports Magazine - Fall 2017 - The Power of One, Collaboration by Many
Seaports Magazine - Fall 2017 - 27
Seaports Magazine - Fall 2017 - 28
Seaports Magazine - Fall 2017 - Bringing the Outside In
Seaports Magazine - Fall 2017 - 30
Seaports Magazine - Fall 2017 - 31
Seaports Magazine - Fall 2017 - 32
Seaports Magazine - Fall 2017 - 33
Seaports Magazine - Fall 2017 - 34
Seaports Magazine - Fall 2017 - 35
Seaports Magazine - Fall 2017 - 36
Seaports Magazine - Fall 2017 - Accelearating the Future
Seaports Magazine - Fall 2017 - 38
Seaports Magazine - Fall 2017 - 39
Seaports Magazine - Fall 2017 - 40
Seaports Magazine - Fall 2017 - 41
Seaports Magazine - Fall 2017 - 42
Seaports Magazine - Fall 2017 - 43
Seaports Magazine - Fall 2017 - 44
Seaports Magazine - Fall 2017 - Power Shift: In the Energy Sector, Change Is the Only Constant
Seaports Magazine - Fall 2017 - 46
Seaports Magazine - Fall 2017 - 47
Seaports Magazine - Fall 2017 - 48
Seaports Magazine - Fall 2017 - 49
Seaports Magazine - Fall 2017 - Strengthening U.S. Ports to Support Increasing Freight and Transportation
Seaports Magazine - Fall 2017 - 51
Seaports Magazine - Fall 2017 - Port Partnerships for Strategic Positioning and Success
Seaports Magazine - Fall 2017 - 53
Seaports Magazine - Fall 2017 - 54
Seaports Magazine - Fall 2017 - 55
Seaports Magazine - Fall 2017 - 56
Seaports Magazine - Fall 2017 - 57
Seaports Magazine - Fall 2017 - Index of Advertisers
Seaports Magazine - Fall 2017 - cover3
Seaports Magazine - Fall 2017 - cover4
Seaports Magazine - Fall 2017 - divider1
Seaports Magazine - Fall 2017 - divider2
Seaports Magazine - Fall 2017 - 66
Seaports Magazine - Fall 2017 - 67
Seaports Magazine - Fall 2017 - 68
Seaports Magazine - Fall 2017 - 69
Seaports Magazine - Fall 2017 - 70
Seaports Magazine - Fall 2017 - 71
Seaports Magazine - Fall 2017 - 72
Seaports Magazine - Fall 2017 - 73
Seaports Magazine - Fall 2017 - 74
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