The Federal Energy Regulatory Commission (FERC) in the US has denied Veresen’s proposal to construct the Jordan Cove terminal in Oregon.

FERC also rejected the application submitted for the construction of the 232-mile Pacific Connector gas pipeline.

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The Pacific Connector pipeline will originate near Malin, in Klamath County, Oregon, and terminate at the Jordan Cove LNG Terminal. It was designed to serve Jordan Cove LNG’s gas supply requirements, as well as new gas supply requirements in Oregon.

Jordan Cove is a wholly owned subsidiary of Veresen, while Pacific Connector is equally owned by a subsidiary of Veresen and a subsidiary of the Williams Companies.

FERC said in a statement: "We find the generalised allegations of need proffered by Pacific Connector do not outweigh the potential for adverse impact on landowners and communities."

"We find the generalised allegations of need proffered by Pacific Connector do not outweigh the potential for adverse impact on landowners and communities."

"We find that without a pipeline connecting it to a source of gas to be liquefied and exported, the proposed Jordan Cove LNG terminal can provide no benefit to the public to counterbalance any of the impacts, which would be associated with its construction."

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According to Veresen, Jordan Cove LNG and Pacific Connector are set to file a request for a rehearing of the decision.

Veresen president Don Althoff said: "Clearly, we are extremely surprised and disappointed by the FERC decision.

"The FERC appears to be concerned that we have not yet demonstrated sufficient commercial support for the projects.

"We will continue to advance negotiations with customers to address this concern."

Jordan Cove LNG will provide direct access to the Canadian and US Rockies natural gas supply sources and will have a Phase I liquefaction design capacity of six million tonnes per annum.