Cedar LNG gets environmental assessment, signs 1.5-million tpy sales agreement

Pembina Pipeline Corp. and the Haisla Nation received the environmental assessment certificate from the British Columbia government for development of the proposed 3-million tonne/year (tpy) Cedar LNG plant. The parties also signed an MOU with ARC Resources Ltd. for a 20-year, 1.5-million tpy liquefaction services agreement.

Cedar LNG is holding discussions with other potential customers for long-term volume commitments A final investment decision for the project is anticipated third-quarter 2023.

The proposed floating LNG plant will be sited on Haisla Nation-owned territory in Kitimat, BC. and powered with renewable energy provided by British Columbia Hydro and Power Authority.

Cedar LNG has a long-term transportation agreement with TC Energy Corp. for natural gas supplies via the latter’s 2.1-bcfd Coastal GasLink pipeline. It has also received its first permit from the BC Energy Regulator for the 8.5-km pipeline that will connect the plant to Coastal GasLink.

Coastal GasLink was about 83% complete as of February 2023, according to TC Energy. The entire route has been cleared, grading is more than 94% complete, and more than 485 km of the 670-km, 48-in. OD pipeline has been backfilled, with restoration activities under way in many areas (OGJ Online, Feb. 1, 2023).