RE:Tomorrow The following is from the Dec 14/20 news release and that conmributed to the sell off at that time. GLTA
Ruby Pipeline
Pembina owns a 50 percent convertible, cumulative preferred interest in the Ruby Pipeline ("Ruby"), which provides for distributions of US$91 million annually in priority to distributions on common equity. Ruby has approximately one billion cubic feet per day of capacity under firm contracts, which expire in 2021 and 2026. Ruby has served as a reliable source of natural gas supply for the California market, with throughput averaging nearly 700 mmcf/d since the beginning of 2018. Furthermore, Ruby is a carbon-neutral pipeline and responsible source of natural gas supply to the Pacific Northwest region, providing optimism for its future value.
At the same time, the existing tariff rate on firm contracts that expire in mid-2021 are well in excess of the current spot rates. As such, based on the upcoming expiries and prevailing interruptible tariff rates, along with Rockies basin fundamentals, and the ongoing uncertainty with respect to the timing of the ultimate approval of the Jordan Cove LNG Project, which would ultimately be expected to utilize capacity on Ruby, Pembina expects to take a material impairment on its investment in Ruby in the fourth quarter of 2020. As of September 30, 2020 , the carrying value of Pembina's investment in Ruby was $1.3 billion .