The Haisla Nation and Pembina Pipeline Corporation decided to move ahead with the Cedar LNG project, a floating LNG export facility on Canada’s West Coast, and the world’s first indigenous majority-owned LNG project.
Pembina and the Haisla Nation, on whose territory the project will be built, announced a positive Final Investment Decision (FID) on the project with a nameplate capacity of 3.3 million tons per year. Cedar LNG aims to deliver Canadian natural gas to the global markets. The facility will be powered by renewable electricity from BC Hydro, making it one of the lowest emitting LNG facilities in the world, Pembina said in a statement.
Together with another project on the Pacific Coast, Shell-led LNG Canada, Cedar LNG in Kitimat, British Columbia, would be one of the first Canadian export projects and would take advantage of the proximity of the Pacific Coast to the key importing markets in Asia.
“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,” said Crystal Smith, Chief Councillor of the Haisla Nation.
In March 2023, Cedar LNG became Canada’s first Indigenous majority-owned LNG facility to receive an Environmental Assessment Certificate from the British Columbia government and a positive Decision Statement from the federal government.
The project has a total estimated cost of approximately US$4.0 billion and is expected to have lower construction and execution risk, being a floating LNG facility manufactured in the controlled conditions of a shipyard, Cedar LNG said.
The partners expect Cedar LNG to be ready for service in late 2028.
Cedar LNG has secured 20-year take-or-pay liquefaction tolling services agreements with ARC Resources Ltd. and Pembina for 1.5 million tonnes per annum (mtpa) each. Commercial discussions are continuing with multiple other prospective customers as Pembina intends to assign its contracted capacity to a third party, Cedar LNG said.
By Tsvetana Paraskova for Oilprice.com
