The Haisla First Nation and Pembina Pipeline Corp. (TSX: PPL,NYSE: PBA) have selected Korea’s Samsung Heavy Industries and Black & Veatch to provide the engineering, procurement and construction of a floating LNG system for Cedar LNG in Kitimat.
“Cedar LNG now has major regulatory approvals, signed memorandums of understanding for long-term liquefaction services for the project's total LNG capacity, and with the achievement of this milestone, the project is at an advanced stage of planning and development with a FID expected by the end of the first quarter 2024,” Cedar LNG said in a press release.
Unlike the larger nearby LNG Canada project, which is a conventional design, Cedar LNG will be a floating LNG system, which reduces the project’s land footprint.
The Haisla and its main industry partner, Pembina Pipelines, have not yet made a final investment decision on the project, which has been estimated to have a capital cost of $3 billion.
"This is a critical milestone on our path towards a FID for Cedar LNG, the first Indigenous majority-owned LNG project in the world," said Cedar LNG CEO Doug Arnell.
Once a final investment is made, Cedar LNG expects onshore construction could begin as early as the second quarter of this year, with “substantial completion expected in 2028.”
