Cedar LNG and its partners, the Haisla Nation and Pembina Pipeline, have postponed the final investment decision (FID) for the proposed floating LNG facility in Canada's British Columbia to mid-2024.
Cedar LNG has completed several key project deliverables, including obtaining material regulatory approvals, advancing inter-project agreements with Coastal GasLink and LNG Canada, signing a heads of agreement with Samsung Heavy Industries and Black & Veatch, and executing a lump sum engineering, procurement, and construction agreement.
The FID for the project was expected to be reached in the first quarter 2024, but according to developers, this has put off until the middle of 2024.
“Though numerous milestones have been achieved, a number of schedule-driven, interconnected elements require resolution prior to making a FID, including binding commercial offtake, obtaining certain third-party consents, and project financing. A final investment decision is now expected in the middle of 2024,” Cedar LNG said.
Located in Kitimat, within the traditional territory of the Haisla Nation, the project is strategically positioned to leverage Canada’s abundant natural gas supply and British Columbia’s growing LNG infrastructure to produce low-carbon LNG for overseas markets.
Natural gas will be delivered to Cedar LNG through an approximately 8-kilometer-long pipeline that connects to the Coastal GasLink pipeline.
The natural gas will then be converted to LNG, before being loaded onto an LNG carrier, about once every 7 to 10 days or up to 50 times a year. Each LNG carrier will travel through Douglas Channel to Hecate Straight, using the existing deep-water shipping lane, on its way to customers in the Asia Pacific.
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