April 4, 2024 – Cedar LNG today announced that it has issued a Notice to Proceed (NTP) to the engineering, procurement, and construction (EPC) contractors following the finalization of long-term commercial offtake agreements. These critical milestones allow the project to proceed to secure financing, which is required prior to making a final investment decision (FID), expected by the middle of 2024.
“Today’s achievements mark an exciting time for our Nation as we seek to make Cedar LNG – the world’s lowest carbon and first Indigenous majority-owned LNG Facility – a reality in the coming months,” said Crystal Smith, Chief Councillor for Haisla Nation. “I am incredibly grateful to our Nation, all levels of government, Pembina and all our partners who have supported our journey to advance a project that protects our environmental and cultural values, while delivering prosperity for decades to come.”
“We are on-track to deliver an Indigenous majority owned, best-in-class LNG facility – one that will benefit the Haisla Nation, Pembina and its customers, the region, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy,” said Scott Burrows, Pembina’s President and Chief Executive Officer.
The issuance of today’s NTP directs our EPC Contractor, Samsung Heavy Industries and Black & Veatch, to finalize engineering and design for, and commence construction of, Cedar LNG’s state-of-the-art floating LNG facility (FLNG). Subject to a FID, once complete, the FLNG unit will be transported from Korea to the Cedar LNG site in Haisla traditional territory in the Douglas Channel, signaling a step change for the LNG industry and Indigenous people everywhere.
With major development milestones achieved, Cedar LNG is preparing for construction, with pre-FID early works commencing in May 2024, including tree clearing and rough grading activities at our proposed marine terminal near Kitimat.
The Project is continuing to progress towards a FID by the middle of 2024, with an anticipated in-service date in late 2028. Further details are provided below.
Commercial Offtake Secured
A 20-year take-or-pay fixed toll contract has been signed with ARC Resources Ltd. (“ARC”) for 1.5 million tonnes per annum (“mtpa”). As part of the agreement, ARC will supply Cedar LNG with approximately 200 million cubic feet per day of sustainable, Canadian natural gas for liquefaction at the environmental leading Cedar LNG facility. Having ARC participate in Cedar LNG is a testament to the value proposition this Project has on a global scale.
Pembina has executed an identical bridging agreement with Cedar LNG for 1.5 mpta of capacity. Commercial offtake discussions are continuing with multiple other customers as Pembina intends to assign its capacity to a third-party following a positive FID.
Read Pembina’s news release and ARC Resources news release for more detail.
About Cedar LNG
Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating LNG facility in Kitimat, British Columbia, Canada, within the traditional territory of the Haisla Nation. Strategically positioned to leverage Canada’s abundant natural gas supply and BC’s LNG infrastructure, Cedar LNG will be powered by renewable electricity from BC Hydro, making it one of the lowest carbon intensity LNG facilities in the world. More information on Cedar LNG can be found at www.cedarlng.com.
About Haisla Nation
The Haisla Nation is the band government of the Haisla people. Our mission is to build a powerful, prosperous and proud community, healthy in mind, body and spirit. We believe in building a strong and thriving community, with healthy and happy members and a sustained and prosperous environment.
We are about 1700 people, with the majority living in Kitamaat Village. We have lived off the land and waters of our traditional territory for thousands of years, and it remains the focus of all we do. We believe that careful and appropriate economic development will bring our people necessary self-sufficiency. Sustainable and realistic economic opportunities are increasingly available and
promise benefits for our people – and for every British Columbian.
We know that in order to attain strength and independence our Nation must work together – with government, business, the community, and internally – with a spirit of respect and partnership.
For more information, visit www.haisla.ca.
About Pembina
Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America’s energy industry for 70 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit www.pembina.com.
Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive. Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division. Pembina’s common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.
About ARC Resources
ARC Resources Ltd. is a pure-play Montney producer and one of Canada’s largest dividend-paying energy companies, featuring low-cost operations and leading ESG performance. ARC’s investment-grade credit profile is supported by commodity and geographic diversity and robust risk management practices around all aspects of the business. ARC’s common shares trade on the Toronto Stock Exchange under the symbol ARX.
For more information, please visit www.arcresources.com....
Read the full news release here
