Pembina Pipeline and the Haisla Nation have made final investment decision (FID) on the $4bn (C$5.47bn) Cedar LNG project, a floating liquefied natural gas (FLNG) facility in British Columbia, Canada.
The facility, with a planned capacity of 3.3mtpa, is set to commence operations by the end of 2028.
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The Haisla Nation holds a majority stake of 50.1% in the Cedar LNG project, with Pembina Pipeline owning the remaining 49.9%.
Situated within the Haisla Nation’s traditional territory, the FLNG facility aims to utilise renewable electricity from BC Hydro.
Financing for the Cedar LNG project is expected to be sourced through asset-level debt, covering around 60% of the project’s cost.
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.
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By GlobalData“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.”
The project has already secured a construction term loan from a consortium of banks.
The project is poised to capitalise on the abundant supply of natural gas from the Western Canadian Sedimentary Basin to access international markets.
Samsung Heavy Industries, in collaboration with Black & Veatch, has been tasked with the design and construction of the Cedar LNG facility.
Cedar LNG has also signed a 20-year take-or-pay liquefaction tolling services agreement with Pembina Pipeline and ARC Resources, each accounting for 1.5mtpa.
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.”
Furthermore, the Cedar LNG facility will be supplied with Canadian natural gas through a long-term transportation agreement with Coastal GasLink Pipeline.
This agreement ensures a daily supply of 400 million cubic feet of natural gas to the facility, securing the necessary input for the FLNG operations.
