Veresen agrees to sell LNG from Jordan Cove facility in US to Itochu

Canadian-based Veresen has signed an agreement to sell liquefied natural gas (LNG) from the proposed Jordan Cove export facility in the US to Itochu.

The LNG facility is being developed by the company in the International Port of Coos Bay in Oregon.

Under the agreement, Itochu will initially purchase 1.5 million tonnes per annum of natural gas for a period of 20 years.

In conjunction with the agreement signed with Jera on 22 March 2016, Veresen has now concluded key commercial terms to supply at least three million tonnes per annum of natural gas.

At present, Veresen is holding talks for the remaining liquefaction capacity at Jordan Cove.

Veresen president and CEO Don Althoff said: "This is the second major customer agreement for the Jordan Cove LNG project and it represents further proof of the market support for this project.

"Itochu is a leading global energy company and we are pleased to have them as an additional foundation customer for the Jordan Cove LNG project."

Jordan Cove project is expected to have an initial design liquefaction capacity of about six million tonnes of natural gas per annum.

The facility will provide direct access to the Canadian and US Rockies natural gas supply sources.

The Energy Division of Itochu handles trading of general energy-related products, including crude oil, petroleum products, LPG, LNG, natural gas, and electricity.

It also promotes exploration, development and production of oil and gas projects.