There are things still to be tied up, but the outlook is good for a go-ahead decision to come in fall on the Haisla Nation’s Cedar LNG project in B.C.
The Haislas’ partner, Pembina Pipeline, says: “Everything is full speed and we’re targeting the end of September. . . . The four current work streams – engineering, regulatory, commercial discussions and financing – are expected to converge for a final investment decision to be made by the third quarter of 2023.”
A final cost estimate is expected later this summer. And if all the lights are indeed green, then Cedar would start shipping LNG to overseas customers by early 2028.
- Cedar LNG will be the world’s first Indigenous-owned LNG-for-export project, with the Haisla holding a 51% stake;
- Its floating LNG facility near Kitimat will produce approximately three million tonnes of LNG per year (compared with 14 million tonnes by Phase One of the LNG Canada project).
- LNG carriers are anticipated to call at the LNG facility approximately 40 to 50 times a year (an average of one shipment every 7-10 days;
- Cedar has a federal export licence, and in March won an environmental assessment certificate from the B.C. government, and a positive decision from the federal government.
Cedar said: “These environmental approvals are the culmination of more than a decade of work by the Haisla Nation to understand how best to develop one of the lowest carbon intensity LNG facilities in the world, in alignment with Haisla values and neighbouring Nations.”
And, it says: “The project will contribute to economic reconciliation in British Columbia by recognizing and implementing Haisla Nation’s authority over economic development on Haisla Nation-owned lands. Income generated by the project will be invested in the Haisla community. . . . In addition, the project will provide jobs and contracting opportunities for Haisla Nation members, member of other local First Nations, and local community members.”
As noted by Alberta’s Canadian Energy Centre, the BC and federal approvals include more than 250 binding conditions including engagement with Indigenous peoples, marine protection, migratory birds protection, traditional land use, and greenhouse gas emissions.
As for emissions, B.C’s environmental assessment office found that Cedar LNG would have among the world’s lowest emissions, at 0.08 tonnes of carbon-dioxide equivalent per tonne of LNG.
The next hurdle for Cedar LNG would be meeting the B.C. government’s requirement that all proposed LNG facilities must “pass an emissions test with a credible plan to be net zero by 2030.”
Just what that means has yet to be defined by the government, but Cedar has been talking for some time with B.C. Hydro about electrifying the floating plant.
All our Alliance fingers are crossed for those green lights.
And we were happy to see this comment from Cameron Goldade, Pembina’s chief financial officer: “The partnership with the Haisla Nation is just a real key aspect of the project strategically over so many work streams and it shows up in the financing side as well. People want to be involved with this and want to support this project.”
Now we look forward, as well, to eventual green lights for the larger Nisga’a Nation’s Ksi Lisims project.
It is in an earlier stage than Cedar of B.C. government environmental assessment. But Ksi Lisims has long promised to be net-zero by 2030.
“The project is designed from the ground up to set a new environmental performance standard, including a proposed floating design which significantly reduces land and shoreline disturbance.
“In addition, the facility will have one of the lowest carbon intensities of any large-scale LNG export project in the world, utilizing several technologies to reduce carbon emissions, including using renewable hydropower from the B.C. grid.”
Thus Nisga’a President Eva Clayton calls for upgrading of the B.C. Hydro grid.
- Ksi Lisims LNG would produce 12 million tonnes of LNG per year;
- The Nisga’s Nation’s partners are Rockies LNG Partners and Western LNG;
- Their floating plant would be at Wil Milit, north of Prince Rupert, near the Nisga’a village of Gingolx;
- Like Cedar LNG, it already has a federal LNG export licence.
And, like Cedar, Ksi Lisims seeks to ensure benefits also flow to neighbouring nations, not just to their own.
To both projects, our best wishes.
And, as well, best wishes to FortisBC, which has long worked with First Nations on proposed expansion of its Tilbury LNG project in Delta B.C.
The Cedar LNG project:
The Ksi Lisims LNG project:
(Posted here 14 June 2023)
