Canadian floating LNG project seeks capacity expansion

September 23, 2025, by Dragana Nikše

An application has been filed to boost the liquefaction capacity of a proposed floating liquefied natural gas (FLNG) project near Kitimat in British Columbia, Canada.

Artist's rendering of the Cedar LNG facility; Source: Cedar LNG

Cedar LNG, a partnership between Pembina Pipeline Corporation and the Haisla Nation, proposes to build what it says will be the world’s first Indigenous majority-owned LNG project, Cedar LNG.

While the project was initially envisaged to have a liquefaction capacity of 400 million cubic feet a day, the partners now want to increase this to 500 million cubic feet a day. This represents an increase in LNG production from approximately 3 million tonnes per annum (mtpa) to 3.75 mtpa.

As stated in the application to the BC Environmental Assessment Office, the increased capacity would not require changes to the equipment or facility infrastructure. Instead, the change would be possible due to operational efficiencies and driven by available capacity from existing pipelines.

More specifically, the application states that the cold winter and cool summer conditions experienced in the Kitimat area, in combination with a higher level of efficiency realized through the detailed design, will allow the project to increase the throughput without additional infrastructure.

Additionally, the partners claim the increase would not alter the approved works or change the previously approved annual number of LNG carriers for the project, which would remain 50 carriers per year. The greenhouse gas (GHG) emissions would also be consistent with those already approved.

Approved in June 2024, Cedar LNG entails the construction, commissioning, and operation of a new Indigenous majority-owned FLNG processing facility and marine export terminal in Kitimat.

The project’s location is seen as one of the shortest shipping routes to key Asian markets, with the Douglas Channel leading to and from the site, offering an established shipping route and deepwater marine inlet with year-round ice-free conditions.

The construction of the FLNG vessel’s topsides started in June at the Samsung Heavy Industries (SHI) shipyard in South Korea. The unit is anticipated to be complete in 2028, with Cedar LNG’s estimated in-service date to follow later that year.

As stated in the Cedar LNG Summer/Fall newsletter, this summer, the Ledcor Haisla Limited Partnership (LHLP) started building the pipeline that will deliver natural gas to the Cedar LNG facility from the LNG Canada site.

LHLP was also picked to build the project’s marine terminal. Work is underway to prepare the area for the installation of infrastructure that will anchor the floating LNG vessel to the shore and power the facility with renewable electricity from BC Hydro grid.

Also situated in Kitimat, LNG Canada is hailed as Canada’s first LNG export facility. The plant celebrated its 10th cargo departure in early September, two months after the first LNG car g o was achieved.