Cedar LNG, the partnership between Haisla Nation and Pembina Pipeline Corporation, have made a final investment decision (FID) on the Cedar LNG project, a floating liquefied natural gas (FLNG) facility with a nameplate capacity of 3.3 million tonnes per annum (mtpa), located in the traditional territory of the Haisla Nation, on Canada’s West Coast.
Cedar LNG is majority-owned by the Haisla Nation, in partnership with Pembina Pipeline Corporation, with 50.1% and 49.9% ownership, respectively.
The Project is strategically positioned to leverage Canada’s abundant natural gas supply from the Western Canadian Sedimentary Basin to access global markets and is expected to achieve higher prices for Canadian producers and enhance global energy security.
Cedar LNG made several innovative design decisions to minimize the project’s environmental footprint and ensure it is one of the lowest-emitting LNG facilities in the world.
One of the most important decisions was to power the facility with renewable electricity from BC Hydro.
In addition, the choice of site location allows the project to leverage existing LNG infrastructure, including the Coastal GasLink pipeline, a deep-water port, roads, and other infrastructure.
Under a long-term transportation agreement with Coastal GasLink Pipeline Limited Partnership, the Cedar LNG facility will receive 400 million cubic feet per day of Canadian natural gas via the Coastal GasLink pipeline.
The Project’s West Coast location provides one of the shortest shipping routes to key Asian markets. The Douglas Channel, leading to and from the site, offers an established, reliable shipping route and deepwater marine inlet, with year-round ice-free conditions.
The project has a total estimated cost of approximately $4.0 billion (gross), including estimated capital costs of approximately $3.4 billion (gross), of which $2.3 billion (gross), or approximately 70%, is under a fixed-price, lump-sum agreement, and $0.6 billion (gross) of interest during construction and transaction costs.
The FLNG facility is being designed and constructed by Samsung Heavy Industries and Black & Veatch, global industry leaders in marine construction and FLNG solutions.
Given the Project will be a floating LNG facility, manufactured in the controlled conditions of a shipyard, it is expected that it will have lower construction and execution risk.
The project is anticipated to be in service in late 2028.
To remind, Cedar LNG has secured 20-year take-or-pay liquefaction tolling services agreements with ARC Resources and Pembina for 1.5 mtpa each. Commercial discussions are continuing with multiple other prospective customers as Pembina intends to assign its contracted capacity to a third-party.
“Together with our partner, the Haisla Nation, we are honored to have made Cedar LNG a reality. This is a historic moment, and we are proud to be moving forward with a project that will deliver industry-leading, low-carbon, cost-competitive Canadian LNG to overseas markets and contribute to global energy security, while delivering jobs and economic prosperity to the local region,” said Scott Burrows, Pembina’s President and Chief Executive Officer.
“This decision shows not only the perseverance of the Haisla Nation in achieving this historic milestone, but also confidence of investors in B.C.’s economy, and how the future for the natural resources sector is bright and will continue to support B.C.’s strong economic performance, which has led Canada’s large provinces in GDP growth since 2017.
“Cedar LNG is a shining example of how natural resource development should work in our province - in full partnership with First Nations and with the lowest emissions possible. By working together, we can build a stronger and cleaner economy that creates opportunities and benefits for all,” added David Eby, Premier of British Columbia.
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