LNG

Pembina Pipeline Corp., joint developer of the Cedar LNG project in British Columbia and the rejected Jordan Cove in the northwest US state of Oregon, has contacted shareholders for a special virtual-only meeting to be held on July 29 on the proposed strategic combination with smaller peer Inter Pipeline Ltd.

The new US Administration has moved quickly on oil and gas banning orders with the upholding of a block imposed by one department in the state of Oregon on the Jordan Cove LNG export project for the West Coast as a proposed outlet for natural gas from the US Rockies and Western Canada.

Pembina Pipeline Corp., the Canadian infrastructure company, said there was still uncertainty surrounding the future of its Jordan Cove LNG export project in the northwest US state of Oregon as Pembina planned to take a natural gas pipeline one-off charge in the fourth quarter.

The US Secretary of Energy Dan Brouillette has issued a final long-term order authorizing the export of domestically produced liquefied natural gas from the proposed Jordan Cove LNG Terminal at Coos Bay in the northwest state of Oregon.

The export permit, which had previously been conditional, follows the approval by the Federal Energy Regulatory Commission announced March 2020 for the siting, construction, and operation of the Jordan Cove liquefaction plant and the related Pacific Connector Pipeline.

“The export authorization for Jordan Cove, the first US West Coast LNG project, will ease access to further position the US as a top supplier of LNG around the world,” said Secretary Brouillette.

“The issuance to Jordan Cove serves to further expand opportunities for US LNG abroad, particularly in the growing markets of Asia, and encapsulates what the Trump Administration has been working hard on for the past three years - providing reliable, affordable, and cleaner-burning natural gas to our allies around the world,” stated Brouillette.

The development company, the Jordan Cove Energy Project is owned by Canada’s Pembina Pipeline Corp. and it now has the authority to export up to 1.08 billion cubic feet per day of natural gas as LNG.

The DoE statement said the project’s natural gas will be sourced from both Canada and the United States and would be liquefied at the Jordan Cove facility for export to any nation worldwide, unless trade is prohibited by US law.

Calgary, Alberta-based Pembina acquired the Jordan Cove LNG project in late 2017 in its takeover of another Canadian company, Veresen Inc.

The project includes a 230-mile pipeline which would traverse four counties in Southern Oregon on the route to the liquefaction plant.

The liquefaction plant and other facilities are planned for a 200-acre site and comprise five small-scale Trains each with 1.5 million tonnes per annum of output for a total of 7.8 MTPA.

“As we work to overcome the Covid-19 pandemic, LNG exports are going to be one of the building blocks toward the United States’ economic recovery,” said DOE’s Assistant Secretary for Fossil Energy Steven Winberg.

“The US has exported LNG to 38 countries, with this authorization to Jordan Cove, the United States can look to increase that number with expanded geographic coverage for LNG exports into key importing markets in Asia, providing enhanced economic opportunities both here in the US and globally,” added Winberg.

Jordan Cove has multiple facilities, including two full-containment storage tanks with total capacity of 320,000 cubic metres, gas treating infrastructure, an export jetty and access to more than 25 billion cubic feet per day of gas supply from Western Canada and the US Rockies.

The project’s Pacific Connector pipeline will have a 36-inch diameter with capacity to transport up to 1.2 billion cubic feet of natural gas per day.

Feed-gas for Jordan Cove would be sourced at the Malin Hub, creating a new outlet for natural gas from areas such as the Rockies Basin.

The export plant is expected to be visited by about 120 LNG carriers per year and Pembina has signed preliminary accords with Jera Co. Inc. and Itochu Corp. of Japan for the supply of cargoes.

May 27 (LNGJ) - Pembina Pipeline Corp. of Canada has agreed to issue $500 million of senior unsecured medium-term notes in relation to the Cochin Pipeline system and as it pursues development projects such as the Jordan Cove LNG export project in the northwest US state of Oregon.

   “Closing of the offering is expected to occur on May 28, 2020 and the net proceeds are intended to be used to repay indebtedness of the company,” said Pembina. US regulators had voted 2-1 in favour of Pembina’s Jordan Cove LNG project in March 2020, despite the Oregon Department of Environmental Quality denying a water quality certification.

Pembina Pipeline Corp. of Canada, the owner of the only approved LNG export project on the West Coast of the United States at Coos Bay in Oregon, has boosted its finances with an $800 million unsecured revolving credit facility.

With the addition of the credit note, Pembina now has $3.3 billion in revolving credit capacity and around $2.3Bln in available cash and unutilized debt facilities.

Pembina said the new credit line would be available for general corporate purposes, thereby providing additional liquidity and flexibility for its activities.

Pembina’s Jordan Cove LNG liquefaction and export plant in Oregon and its Pacific Connector Gas Pipeline project were approved in March 2020 by the US Federal Energy Regulatory Commission.

Pembina noted in its financial update that over the next two years, the company’s debt maturities are modest and include $73M in 2020 and $800M distributed across three instruments throughout 2021.

Calgary, Alberta-based Pembina acquired the Jordan Cove LNG project in late 2017 in its takeover of another Canadian company, Veresen Inc.

The project includes a 230-mile pipeline which would traverse four counties in Southern Oregon on the route to the liquefaction plant.

The liquefaction plant and other facilities are planned for a 200-acre site and comprise five small-scale Trains each with 1.5 million tonnes per annum of output for a total of 7.8 MTPA.

“In today's challenging and uncertain environment, ensuring ample liquidity is of utmost importance and I would like to acknowledge and thank our key lender group for their swift response,” said Scott Burrows, Pembina's Senior Vice President and Chief Financial Officer.

“We enjoy productive, long-term relationships with our lenders and value their deep understanding of our business,” added Burrows.

“Over the past two weeks we have taken decisive and unprecedented action to preserve our strong balance sheet, protect our ‘BBB’ credit rating and ensure we have the liquidity to fund our business until market conditions stabilize,” stated the CFO.

The LNG venture is only one of several North American projects Pembina is developing and they include the Prince Rupert liquefied petroleum gas export terminal on Watson Island in the Canadian Pacific Coast province of British Columbia.

That project is a rail terminal to move LPG from rail cars to ships destined for international markets.

There is no on-site processing or refrigeration, and smaller volumes for storage and movement require a smaller footprint relative to other energy facilities proposed on the West Coast.

However, Jordan Cove LNG has multiple facilities, including two full-containment storage tanks with total capacity of 320,000 cubic metres, gas treating infrastructure, an export jetty and access to more than 25 billion cubic feet per day of gas supply from Western Canada and the US Rockies.

The project’s affiliated Pacific Connector pipeline will have a 36-inch diameter with capacity to transport up to 1.2 billion cubic feet of natural gas per day.

Feed-gas for Jordan Cove would be sourced at the Malin Hub, creating a new outlet for natural gas from areas such as the Rockies Basin.

The export plant is expected to be visited by about 120 LNG carriers per year and Pembina has signed preliminary accords with Jera Co. Inc. and Itochu Corp. of Japan for the supply of cargoes. 

Feb 28 (LNGJ) - Pembina Pipeline Corp., the Canadian energy infrastructure company developing the US Jordan Cove LNG export plant in the northwest state of Oregon, said the regulatory processes were ongoing. “The US Federal Energy Regulatory Commission delayed a decision originally expected on February 13, 2020,” said the Calgary-based company in its latest earnings. “Pembina looks forward to obtaining a final decision. Pembina is focused on getting all the remaining permits required to proceed with this project,” stated the company. 

   The liquefaction plant and other facilities are planned for a 200-acre site at Coos Bay and comprise five small-scale Trains each with 1.5 million tonnes per annum of output for a total of 7.8 MTPA. The Jordan Cove venture's other facilities would include two full-containment LNG storage tanks with total capacity of 320,000 cubic metres, gas treating facilities, an export jetty and access to more than 25 billion cubic feet per day of gas supply from Western Canada and the US Rockies.

The US Federal Energy Regulatory Commission plans a statement on February 20 on the application to build the Jordan Cove LNG export terminal at Coos Bay in the northwest state of Oregon.

Pembina Pipeline Corp. of Canada said it was still on track to develop the Jordan Cove LNG export project at Coos Bay in the northwest state of Oregon as it reported an increase in profits while seeking to boost future earnings with the acquisition of a major Canada-US pipeline from Kinder Morgan.

The US Federal Energy Regulatory Commission has delayed completion of an environmental impact statement (EIS) for the Jordan Cove liquefied natural gas export facility and its affiliated Pacific Connector Pipeline planned for the northwest state of Oregon.