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Pembina (PBA) Aborts Jordan Cove Energy Plan Lacking Approvals

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Pembina Pipeline Corporation (PBA - Free Report) recently abandoned its Jordan Cove Energy Project, which included plans to build and operate a $10-billion gas liquefaction plant and related infrastructure along the Oregon coast. PBA notified US authorities last week that the project's failure to get permission from the state agencies prompted the decision to cancel it.

The project could not get state approval for water quality certification and authorizations under the Coastal Zone Management Act. The primary reason was that it was anticipated to become Oregon's single greatest source of greenhouse gas emissions. Also, Pembina's petition to forgo the state's regulatory power was denied by FERC, earlier this year.

This Calgary-based energy firm petitioned the US Federal Energy Regulatory Commission (FERC) to revoke approvals for the LNG terminal and the Pacific Connector pipeline, which would have supplied natural gas from Canada to the intended Coos Bay plant.

The planned Jordan Cove LNG export facility had a capacity of 7.8 million tons per annum. Construction of a 229-mile, 36-inch-diameter pipeline from the plant to Malin, a city in Klamath County on the Oregon-California border, is also part of the plan. The project's expected start date was delayed and was last scheduled for delivery in 2025.

Jordan Cove has been opposed by landowners, environmental groups, the indigenous population and the Oregon state government since its inception in 2007. Opponents raised the alarm about the project's role in global warming, its effects on tribal lands and waterways, and its implications for the tourists and fishing sectors.

It is important to note that Jordan Cove, one of several LNG projects proposed for Oregon in recent years, was put on hold in April 2021 by Pembina. The project was acquired by PBA in 2017 when it purchased its rival entity Veresen that originally owned it. The business was reassessing the implications of recent regulatory rulings. Jordan Cove's public relations office in southern Oregon was shuttered more than a year ago.

PBA’s decision to scrap the project is a challenging win for environmentalists, landowners, tribal groups and others opposed to it. Landowners will no longer have to worry about their property being taken.

Zacks Rank & Key Picks

Pembina currently has a Zack Rank #3 (Hold). Investors interested in the energy  sector might look at the following stocks worth considering with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.