Sheet metal & Air Conditioning Contractors’ National Association

Letters & Testimonies

SMACNA Supports Federal Energy Regulatory Commission's Approval of Jordan Cove Energy Project

Mar 16, 2017

The Sheet Metal and Air Conditioning Contractors' National Association (SMACNA) is supported by more than 4,500 construction firms engaged in industrial, commercial, residential, architectural and specialty sheet metal and air conditioning construction throughout the United States, including more than two dozen Oregon corporations. On behalf of our membership we urge your support for approval of the Jordan Cove Energy Project to export liquefied natural gas (LNG). Importantly, we ask that FERC will reconsider its recent decision and approve this important project as soon as possible.

While endorsing a project of any kind, including a joint endorsement of a construction project, is a rare event for our association, the Jordan Cove Energy Project is unique and meets economic and employment goals shared by our Oregon and national contractors as well as our workforce. Not only will the Jordan Cove project stimulate and sustain the economy of the SW Oregon region, it will serve export markets beneficial to our balance of payments as well as the energy needs of our allies.  This nearly $8 billion construction project (export facility and pipeline) would employ an average of 1,750 people over 42 months with peak employment being 3,500 construction jobs.  In addition, we are pleased that a Project Labor Agreement (PLA) has been negotiated to build this facility, ensuring a first rate workforce will complete the project over a four-year periodJordan Cove LNG estimates that roughly 10 to 20 percent of construction workers will come from the Coos Bay area, 30 percent of construction workers will come from within a 50-mile radius and more than 80 percent of construction workers will come from Oregon and Southwest Washington.

With a large scale, highly skilled construction effort concluding at the Intel Corporation expansion site, the Jordan Cove LNG Project’s planned ground breaking would sequence very well for both specialty skilled contractors and the Building Trades’ skilled labor.  The Intel expansion has been a major positive for the Oregon construction industry but that project is nearing completion. Most industry observers believe a probable OR construction slowdown could be largely mitigated by approval and construction of the Jordan Cove Energy Project.  

Jordan Cove is a model for the private financing of necessary infrastructure improvements in SW Oregon. The pipeline’s cost will be borne by The Williams Companies, at no expense to taxpayers or utility ratepayers. The infrastructure improvements will increase the availability of natural gas in SW Oregon and will make the region more competitive in attracting industries that require large volumes of natural gas from a reliable source. As an added benefit, the pipeline would connect to the Williams’ Grants Pass Lateral Pipeline, allowing gas to flow northward to meet established demands in Roseburg and Eugene serving our firms and markets. Jordan Cove’s commitment to this project is undeniable. Jordan Cove LNG will have invested more than $420 million by the end of 2016 in engineering, planning and feasibility activities, and to acquire the property on which to construct the terminal, and property to be used for environmental mitigation.

Further, Jordan Cove will have minimal impact on gas prices based upon the economic analysis performed by the Navigant consultancy firm comparing it to six proposed LNG export projects on the East Coast, the Gulf region and on the West Coast.  JERA Co., Inc., which will be the world’s largest purchaser of liquefied natural gas by volume upon integration of the Tokyo Electric Power Company and Chubu Electric Power Company’s fuel sale and purchase agreements, has finalized the key commercial terms with Jordan Cove covering the purchase by JERA of at least 1.5 million tons per annum of natural gas liquefaction capacity for at least 20 years.