Pembina Pipeline Corp. and the Haisla Nation, partners in development of the proposed 3-million tonne/year (tpy) Cedar LNG project in Kitimat, BC, have signed a heads of agreement with Samsung Heavy Industries Co. Ltd. and Black & Veatch Corp., providing Cedar with secure access to the shipyard capacity required to meet its early 2028 target commercial operations date. The parties expect to finalize a lump sum engineering, procurement, and construction agreement in December 2023.
Cedar LNG will use a floating LNG plant for the project. It plans to power the site with renewable electricity supplied by British Columbia Hydro and Power Authority.
All major regulatory approvals have been granted and MoU are in place for 100% of Cedar LNG’s output. ARC Resources Ltd., a gas producer in Montney shale, earlier this year signed an MOU with Cedar towards a 20-year, 1.5 million tpy liquefaction services agreement. ARC would supply roughly 200 MMcfd of gas to the plant.
Cedar LNG plans to take final investment decision by end-2023 but acknowledges that this could slip to early 2024 depending on the alignment of multiple work streams (OGJ Online, Aug. 4, 2023).
