Pembina Pipeline Corp T.PPL

Jordan Cove

[Awarded]

I found the following excerpt interesting.  It is from the 2019 Priority issues of the Oregon Business Coalition. 

Jordan Cove Natural Gas Export Terminal and Pacific Connector Pipeline:

The Jordan Cove Natural Gas Export Terminal and Pacific Connector Pipeline would establish the Oregon International Port of Coos Bay as the premier energy center on the U.S. Pacific Coast. The Jordan Cove project is located within the Port of Coos Bay on the north spit of lower Coos Bay, on an undeveloped site zoned for industrial development. The project represents a $10 billion investment in the Southern Oregon coast, an area in desperate need of economic development. The Port of Coos Bay will also benefit through Jordan Cove's 7.5 million tons of cargo exported per year, which will significantly increase the total tonnage of cargo moved through the Port. This is important as federal funds for the maintenance of the Port's navigation channel are based on the volume of cargo moved through the Port, and only those ports moving 10 million tons of cargo a year or more are guaranteed to receive federal maintenance funds.

The project will employ 6,000 people during construction and 200 permanently at wages nearly three times the area average, and provide an ongoing source of tax revenue for the local community. When operational, Jordan Cove and Pacific Connector will pay $60 million a year in local taxes to Coos, Douglas, Jackson and Klamath counties, and $48 million a year in corporate taxes to the state for a total annual tax benefit of $108 million in Oregon. It will also substantially increase overall economic activity in the area. Jordan Cove has project labor agreements in place to use union contractors, and local governments in Coos County are working on a "community enhancement plan" to divide the influx of approximately $500 million in taxes and payments in lieu of taxes expected to accompany the project over a 20-year period.

[JohnSP]

Nice summary, but lots of opposition to this project. I own Pembina but do not like this project as: 1) Pembina have no experience building or operating an LNG Plant (normally domain of the big guys like RDS & XOM) 2) big risk as USD10 bln which is half their market cap (not sure if parteners or USD10 bln is just for plant or also suppply PL, tankers etc), see IPL for example 3) delays and

[autofocus111]

JohnSP These guys are not stupid or reckless. I can't believe PBA would ever embark on a project of  this size and complexity alone. I think PBA's strategy is to obain full clearance to build then bring a large partner onboard (presumably they already have interested parties lined up), just as they did with their PDH/PP plant in AB.

[fauxtomato]

An FID on Jordan Cove would significantly enhance the long term value of the Ruby pipeline, the reason they invested in it in the first place, but I think we're still several years away and it'll continue to burn some cash on the backburner. In addition the the local opposition, there is a lack of commercial support, though a window may open up towards the end of this decade as Chinese