Pembina Pipeline and its partner, Haisla Nation, have taken a positive final investment decision (FID) on the Cedar LNG project in British Columbia, Canada.
The floating liquefied natural gas (FLNG) facility entails an estimated investment of around $4bn. Located within the traditional territory of the Haisla Nation in Kitimat, the Cedar LNG plant has a nameplate capacity of 3.3 million tonnes per annum (mtpa).
Cedar LNG is majority-owned by the Haisla Nation, which holds a stake of 50.1%, while the remaining 49.9% is held by Pembina Pipeline. It is expected to begin operations in late 2028.
Haisla Nation Chief Councillor Crystal Smith said: “Because of our Nation’s determination and environmental leadership, Cedar LNG will make the most significant mark on economic reconciliation ever in our country.
“With Cedar LNG, we have proven that Indigenous communities can successfully forge a path to economic independence and generational prosperity. We have created a model for how sustainable energy development should be done, with Indigenous Nations as owners, balancing environmental interests with global demand for cleaner energy.”
Located on Canada’s West Coast, the project is said to be positioned strategically to tap the abundant supply of natural gas from the Western Canadian Sedimentary Basin to access global markets.
The Cedar LNG project is financed primarily through asset-level debt financing, covering approximately 60% of its total cost. It has also obtained a construction term loan from a syndicate of banks.
The remaining 40% of project costs will be funded through equity contributions from both partners.
Samsung Heavy Industries and Black & Veatch are overseeing the design and construction of the FLNG facility.
Additionally, Cedar LNG has entered into 20-year take-or-pay liquefaction tolling services agreements with ARC Resources and Pembina Pipeline, each for 1.5mtpa.
Under a long-term transportation agreement with Coastal GasLink Pipeline, the Cedar LNG facility will receive 400 million cubic feet per day of Canadian natural gas via the Coastal GasLink pipeline.
Pembina Pipeline president and CEO Scott Burrows said: “Cedar LNG aligns perfectly with our strategy and where we want to be as a company moving forward.
“The Cedar LNG Project will enhance the resiliency of Pembina’s business, provide much needed new egress and greater access to global markets for our customers, and reflects the Haisla Nation and Pembina’s shared values and commitment to supporting a more sustainable future.”
