Pembina Pipeline Corp. will partner with the Haisla Nation in developing the 3-million tonne/year floating Cedar LNG plant on Douglas Channel in Kitimat, BC. The partners intend to make a final investment decision (FID) in second-half 2023 to meet an expected second-half 2027 in-service date.
Cedar LNG has secured 400 MMcfd of long-term transportation on TC Energy Corp.’s 670-km (420-mile) Coastal GasLink pipeline. Gas will be delivered to the plant through a 5-mile lateral to Coastal GasLink.
Production from the plant will largely target the Asia-Pacific market. The project will source natural gas from the Montney shale in northeast British Columbia.
Construction of the floating plant will take place at Keppel Offshore & Marine’s Singapore shipyard, using Black & Veatch modular technology.
Cedar LNG has completed preparation work and has secured its LNG export license from the Canada Energy Regulator. Environmental assessments by the provincial and federal governments are underway.
Under the agreement, Pembina will acquire equity interests in Cedar LNG currently owned by PTE Cedar LP and Delfin Midstream Inc., with a resulting ownership of 50% each between the Haisla Nation and Pembina. Pembina will operate the project.
The plant will cost an estimated $2.4 billion. Pembina expects to spend $90 million on Cedar LNG over the next 2 years, before FID.