The Cedar LNG Project is a Floating Liquefied Natural Gas (FLNG) processing and marine export terminal facility planned to be developed in Kitimat District, British Columbia, Canada.
The project will be developed by The Haisla Nation, the band government of the Haisla people, and energy transportation and midstream service provider Pembina Pipeline.
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In February 2022, an Environmental Assessment Certificate (EAC) application for the project was submitted to the British Columbia Environmental Assessment Office. The EAC was received in March 2023.
Cedar LNG has also received a positive Decision Statement from the federal government and secured major environmental approvals.
A Final Investment Decision (FID) on the project is expected by the end of 2023 or early 2024. The commercial operations may begin in 2027.
During peak construction period, the LNG project will employ up to 500 people. It will also create around 100 full time jobs during operations.
Once operational, Cedar LNG will leverage the abundant natural gas supply of Canada and LNG infrastructure of British Columbia to produce low-carbon and cost-competitive LNG for export.
Cedar LNG Project Location and Site Details
The Cedar LNG Project will be located within the traditional territory of the Haisla Nation, approximately 8.5km southwest of Kitimat and directly across Douglas Channel from the Kitamaat Village.
The location is around 10km southwest of the Kitimat Town Centre in British Columbia. Access roads will be built to connect the site with the Bish Creek Forest Service Road (FSR), which stretches from Kitimat to Bish Cove.
Overall, the project will encompass an area of around 130 hectares with the facility covering up to 88 hectares.
Cedar LNG Project Infrastructure
Key project components of Cedar LNG will include feed gas distribution system including metering, pressure let-down and regulation facilities; a potential electric transmission line; power supply and distribution infrastructure; and nearshore (floating) LNG production unit including feed gas processing, pre-treatment and integrated LNG storage.
The project will also include a marine terminal and one or multiple jetties.
The FLNG will be designed as a permanently moored facility consisting of natural gas receiving treatment units, air cooling systems, natural gas liquefaction train(s) running on electricity, LNG offloading arms and career berthing systems, product storage vessels, flare system, LNG storage tanks with a capacity of 250,000m3, marine water intakes, and wastewater collection and treatment systems.
The FLNG will also have marine outfalls, a control room, staff facilities, an emergency shutdown system, a bilge system, an emergency backup power generation system, a cofferdam heating system, a ballast water system, electrical transformers and a natural gas connection to the onshore facilities.
The marine terminal will include a mooring system to connect the FLNG to the shore, connections to the onshore natural gas pipeline, and power supply, and a small craft jetty to Moore tugs and project vessels.
The associated infrastructure will include parking areas, access roads, fencing, and onsite facilities like power distribution lines connecting the substation and onsite facilities, water storage tanks, and wastewater storage tanks.
Operations
The Cedar LNG would receive natural gas via an 8km long pipeline connecting the Coastal GasLink Pipeline. Cedar will treat the natural gas and cool it to -162oC, converting it from gas to liquid. The LNG will be loaded onto the LNG carriers, once every seven to ten days.
The LNG transport will be accompanied by escort tugs within the Marine Shipping Route between the FLNG and the British Columbia Coast Pilot boarding station near Triple Islands.
The LNG carriers will cross the Douglas Channel and Hecate Straight using deep-water shipping lane and transport LNG to the markets in the Asia Pacific.
The Cedar LNG Project will have a liquefaction capacity of up to and including 400 million standard cubic feet of natural gas per day or 11.33 million cubic metres of natural gas per day to produce 3 to 4 million tonnes per annum (mtpa) of LNG for export.
The project will also have up to 250,000m3 (approximately 108,000 tonnes) of LNG storage capacity.
It will receive electricity via an up to 8.5km long, up to 287kV, power transmission line between BC Hydro’s Minette Substation and the substation within the Facility Area.
Cedar LNG will have an operational lifespan of at least 25 years, with the possibility of extending the export licence to 40 years.
Contractors Involved in the Cedar LNG Project
Black & Veatch, a global engineering, procurement, consulting, and construction firm, and Samsung Heavy Industries (SHI), a shipbuilding company, were awarded a Front End Engineering and Design (FEED) contract for the project in February 2022.
Black & Veatch also conducted the pre-FEED study before receiving the FEED contract.
Under the FEED contract, the company will be responsible for the top-side process plant. It includes a patented PRICO liquefaction technology.
SHI is responsible for the hull, LNG storage system, topsides integration, and fabrication of topside modules designed by Black & Veatch.
Energy infrastructure company TC Energy is supporting the project by supplying it with natural gas through the Coastal GasLink.
Liquefaction Services Agreement
In March 2023, Cedar LNG signed a memorandum of understanding (MoU) for 20-year long-term liquefaction services agreement with ARC Resources.
Both the entities aim to finalise a definitive agreement for 1.5 million tonnes of LNG per year, which is nearly half of the project’s production.
