The EPC contract entails the design, fabrication and delivery of the floating liquefied natural gas (FLNG) unit. Credit: Vytautas Kielaitis/Shutterstock.

Partners in Canada’s Cedar LNG project have awarded a key contract for the project’s FLNG production unit.  

The project, a collaboration between the Haisla Nation and Pembina Pipeline, has engaged Samsung Heavy Industries and Black & Veatch for the EPC of the unit. 

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The EPC contract entails the design, fabrication and delivery of the FLNG unit.  

Located in Kitimat, within the traditional territory of the Haisla Nation, the project will be powered by renewable electricity from BC Hydro. 

Cedar LNG has already secured key regulatory approvals and signed memorandums of understanding for long-term liquefaction services, covering the project’s total LNG capacity.  

With the EPC contract in place, the project has entered an advanced stage of planning and development. 

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A final investment decision (FID) is anticipated by the end of the first quarter of 2024. 

Onshore construction work on the Cedar LNG project, subject to FID, could start as soon as the second quarter of 2024. 

The delivery of the FLNG unit and the material completion of the project is expected by 2028. 

Cedar LNG CEO Doug Arnell said: “This is a critical milestone on our path towards a FID for Cedar LNG, the first indigenous majority-owned LNG project in the world.  

“We have secured world-class FLNG expertise and look forward to working with SHI and Black & Veatch to build an LNG facility with one of the cleanest environmental profiles in the world that will usher in a new era of low-carbon, sustainable LNG production.” 

Black & Veatch chairman & CEO Mario Azar said: “Our role in helping Cedar LNG make history on this world-class facility aligns with our commitment to deliver a reliable and resilient global energy supply as a leader in the world’s energy transition.”