GLNG: Jordan Cove LNG in doubt

The future of Pembina Pipeline’s proposed Jordan Cove LNG export terminal in Oregon looks increasingly in doubt, with the company taking a write-down on its investment in the project.
Pembina now says it can no longer predict when the facility may be built, and is evaluating the path forward.
The news marks the latest setback for Jordan Cove, which Pembina acquired via its takeover of Veresen in 2017. Both Veresen and Pembina have struggled with obtaining regulatory approvals for the project. In 2016, the US Federal Energy Regulatory Commission (FERC) rejected Veresen’s application to build the terminal and the gas pipeline that would serve it.
The FERC subsequently approved a revised application for Jordan Cove in 2020, but other regulatory battles continued, with state regulators in Oregon denying several permits that are necessary for the project to proceed. In what was described as a potentially fatal blow to the project, in February 2021, federal authorities upheld the State of Oregon’s finding that the project was not consistent with its coastal zone management plans. Pembina had appealed against the state’s finding to the US Department of Commerce.
Last week, Pembina said it had taken a CAD1.6bn ($1.3bn) write-down on investments in the CKPC petrochemical joint venture, the Ruby pipeline and the Jordan Cove project.
“We believe these opportunities remain in strategy, make economic sense when de-risked, and are aligned with Pembina's ESG [environmental, social and governance] priorities,” Pembina stated. “We believe the time for these projects may come; however, we can sadly no longer predict with certainty when that time will be and hence were compelled to reflect their impairments in our 2020 financial statements through a non-cash charge.”