Thirty-five organizations across the Pacific Northwest released an investor briefing detailing major public safety, climate, regulatory, and economic risks of the Jordan Cove LNG project, a fracked-gas pipeline and export terminal that Canadian fossil fuel corporation Pembina proposes to build on the southern Oregon coast.
The briefing, titled “Jordan Cove is Risky Business,” highlights the potential negative impacts and intense community opposition that should steer banks away from further involvement in this project.
The report was sent to top bankers of Pembina Pipeline Corporation including RBC, Bank of Nova Scotia, CIBC, TD and JPMorgan Chase, in addition to potential investors of the project.
The briefing notes that as global energy markets evolve, the Jordan Cove LNG export terminal looks ever more at risk of becoming a stranded asset. A tight, competitive global market and LNG glut coupled with the rise of short-term “portfolio” models makes Jordan Cove profitability a long shot.
Additionally, the Investor Briefing outlines the regulatory roadblocks that the project is currently facing. This includes the recent Clean Water Act permit denial from Oregon Department of Environmental Quality, previous denials from the Federal Energy Regulatory Commission (FERC), and local land use permits that have been overturned in court.
Jordan Cove LNG has faced strong and growing opposition since 2005. A total of nearly 90,000 comments were filed in opposition to two recent state permit applications. The Klamath Tribes, the Yurok Tribe, the Karuk Tribe, the Confederated Tribes of Siletz Indians, and the Tolowa Dee-Ni Nation have all declared strong opposition to the proposed project. According to the report, as of April 26, 2019, approximately 40% of landowners on the pipeline route have refused to sign right-of-way easements and dozens of impacted landowners have denied access for a variety of surveys needed for the project to go forward.