The other LNG play
Plus: an interesting - and sizable - insider buy
When he was younger, Max Fawcett wanted to make a mint in the markets. Now as the managing editor of Alberta Venture he gets to write about them. Close enough, right? He can be reached at firstname.lastname@example.org
by Max Fawcett
With all the talk of BC’s various proposed LNG export projects, it would be easy to miss the one that’s rapidly advancing towards construction south of the border. On Monday, the U.S. Department of Energy granted conditional approval for the Jordan Cove LNG project in Oregon. That’s on the heels of a DOE authorization granting the project the right to export up to nine million tonnes (1.55 billion cubic feet per day) annually to countries that the U.S. has free trade agreements with. The last hurdle the project has to overcome is certification by the Federal Energy Regulatory Commission.
As AltaCorp capital writes in a note, “another green light for the Jordan Cove project is a positive for Canadian natural gas producers (TOU, ECA, PEY, BNP, BXE) who have witnessed reduced southbound volumes through Kingsgate when the Ruby Pipeline became operational in 2011, moving stranded Rocky Mountains natural gas into the sometimes lucrative California market and squeezing down Canadian Producer volumes. As the Jordan Cove LNG project (owned by Veresen) makes further steps forward, British Columbia will likely come under further pressure to solidify commercial terms for LNG exports.