Veresen, the developer of the Jordan Cove LNG facility in Oregon, has announced a preliminary agreement on key commercial terms with Itochu, including the purchase of 1.5 million mt/year of LNG (190 MMcf/d or 70.1 Bcf of gas) for an initial term of 20 years.
Veresen recently signed another commercial agreement with JERA Co. in March.
"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,” said Don Althoff, President and CEO of Veresen.
The Jordan Cove LNG project is expected to have an initial design liquefaction capacity of approximately 6.0 million tonnes per annum, or approximately 1 billion cubic feet of natural gas per day.
With approximately 130 bases in 65 countries, Itochu engages in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, information and communications technology, realty, general products, insurance, logistics services, construction, and finance, as well as business investments in Japan and overseas.
Itochu’s Energy Division handles trading of general energy-related products, including crude oil, petroleum products, LPG, LNG, natural gas, and electricity as well as promoting related projects. The Energy Division also promotes exploration, development and production of oil & gas projects.