Morneau/Trans Mountain Overshadowed Pembina Pointing To FID on Jordan Cove LNG In 2018 Or Following Final Approvals

It was bad timing for Pembina’s analyst day to start at 8:30am EDT on May 29 given it was just before the Morneau Trans Mountain statement.   Mgmt was well aware of this and started off by saying “Yes, we might have an evacuation if Trans Mountain or Kinder Morgan announces whatever they’re going to do”.   It meant that Pembina’s comments were completely overshadowed as investors and sell side analysts were forced to deal with the implications of that Morneau announcement.  Its too bad because mgmt. made some key comments (not on the slides) on LNG and Jordan Cove.   We listened to the webcast and believe mgmt. is signaling FID on Jordan Cove is coming in 2018. Pembina sees a perfect timing for Jordan Cove LNG right now (they were too early before) to take advantage of a LNG supply gap opening up in 2023, are working with pipeline companies about the natural gas supply to Jordan Cove, are in active discussions with Chinese offtakers, and also state a “final investment decision expected following receipt of regulatory and environmental approvals”.  We get a similar impression as we did with Shell’s comments six months ago – it just sounds like Pembina is pointing to or signaling a FID on Jordan Cove LNG in 2018, or as soon as they get the final approvals. Continue reading “Morneau/Trans Mountain Overshadowed Pembina Pointing To FID on Jordan Cove LNG In 2018 Or Following Final Approvals”