Blog: After 12 years, a huge step for Cedar LNG

The Cedar LNG project, now a partnership between the Haisla Nation and Pembina Pipeline Corporation, has been moving along for 12 years, including obtaining a natural-gas export licence, government approvals, and engineering and environmental design.

Now it’s taken a truly significant step, selecting Samsung Heavy Industries (SHI) of South Korea and Black & Veatch of the U.S. to provide engineering, procurement and construction for the design, fabrication and delivery of the project’s floating LNG (FLNG) production plant near Kitimat.

Says Doug Arnell, Cedar LNG’s CEO: “We have secured world-class FLNG expertise and look forward to working with SHI and Black & Veatch to build an LNG facility with one of the cleanest environmental profiles in the world that will usher in a new era of low-carbon, sustainable LNG production.”

It’s all subject to a formal Final Investment Decision (FID), which could be announced in a matter of weeks. If it’s positive, then onshore construction work could begin as early as the second quarter of this year. Then delivery of the floating plant — and substantial completion of the project — could be expected in 2028.

It would make history as the first Indigenous majority-owned LNG-for-export project in Canada — and in the world.

Crystal Smith, the Haisla Nation’s elected chief councillor (and chair of our First Nations LNG Alliance) says: “The Cedar LNG project will be the largest First Nation-owned infrastructure project in Canada, creating jobs, contracting and other economic opportunities for the Haisla Nation, the community of Kitimat, neighbouring Indigenous Nations, and the local region.

“Cedar LNG represents long-term growth for our region in a way that protects our land and environment, and we are excited to see the project move forward . . . with innovative technology and reduced environmental footprint.”

Black and Veatch has developed more than 30 LNG production facilities globally. It has performed many front-end engineering and design (FEED), pre-FEED, and permitting projects for LNG terminals.

“Our role in helping Cedar LNG make history on this world-class facility aligns with our commitment to deliver a reliable and resilient global energy supply as a leader in the world’s energy transition,” said Mario Azar, Black & Veatch chairman & CEO.

Samsung Heavy Industries is one of the world’s largest shipbuilders. Among other projects, it built the world’s largest floating LNG plant, for Shell’s Prelude project in Australia. That weighs 260,000 tons and has a length of 488 metres.

Cedar LNG was approved by federal and provincial governments in March 2023.

“Cedar LNG will benefit Pembina and its customers, the Haisla Nation, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy,” says Scott Burrows, Pembina’s CEO

Cedar LNG’s floating plant in Douglas Channel would be moored to Haisla territory, 8.5 km southwest of Kitimat.

It would produce some three million tonnes of LNG a year (compared with 14 million tonnes from LNG Canada and 12 million from the Ksi Lisims LNG project proposed by the Nisga’a Nation farther north in B.C.)

Up to 50 times a year, a loaded LNG carrier from Cedar LNG will travel to Hecate Straight, using the existing deep-water shipping lane, en route to customers in the Asia Pacific. The carriers will be assisted by green tugs (powered by electricity or LNG) from HaiSea Marine, a joint venture majority-owned by the Haisla Nation in partnership with Seaspan ULC.

Cedar LNG will get its natural gas through a pipeline link connected to the major Coast GasLink pipeline that will feed the LNG Canada plant at Kitimat.

The project already has a Memorandum of Understanding with ARC Resources to supply and liquefy natural gas, producing about half of the facility’s total production. ARC and Cedar will work to to finalize a definitive agreement.

Of prime importance: Cedar LNG would use power from B.C. Hydro (rather than burning natural gas to generate power) and so have one of the lowest carbon intensities in the world. It will then contribute to the displacement of coal as an energy source in Asia, contribute to lower overall global emissions, and enhance global energy security.

Up to 500 people will work at Cedar LNG during peak construction, and some 100 people at the facility during full-time during operation.

The First Nations LNG Alliance hails the latest news — and the project and its benefits for First Nations people, for the world, and for the world climate.

We also support the Nisga’a Nation in its plans for the Ksi Lisims LNG project, in partnership with Rockies LNG and Western LNG.

Ksi Lisims is winding its way through government approval processes — and this week announced that Shell has signed a 20-year deal to buy LNG from it.

• Cedar LNG’s latest news release: https://ow.ly/6M5y50QoA50
• About Cedar LNG: https://ow.ly/XeGw50QoA51
• About Black and Veatch: https://ow.ly/wzCm50QoA52
• About Samsung Heavy: https://ow.ly/AAL650QoA4Y
• About HaiSea Marine: https://ow.ly/PS9N50QoA4X
• About Ksi Lisims LNG: https://ow.ly/tSTl50QoA53
• Ksi Lisims deal with Shell: https://ow.ly/BZMf50QoLg6
• Cedar LNG’s detailed project description: https://ow.ly/jfKU50QoKQt

(Both pictures are artist’s concepts of the Cedar LNG floating plant)

(Posted here 10 January 2024)