SHI starts assembling Canada-bound FLNG

The Samsung Heavy Industries (SHI) shipyard in South Korea has hosted a topside steel cutting ceremony for a floating liquefied natural gas (FLNG) vessel that will form part of an LNG project being developed near Kitimat in British Columbia, Canada.

The ceremony held on May 26, 2025, marked a major milestone for the $4 billion Cedar LNG project, as stated by its developers, Pembina Pipeline Corporation (Pembina) and the Haisla Nation. According to them, certain elements of the vessel will be fabricated while the design of the entire floating LNG system continues.

Once completed, the vessel will be transported from South Korea to the site of the proposed terminal in the traditional territory of the Haisla Nation, ushering in what the partners say is a new era of Indigenous-led LNG export for British Columbia, Canada, and the world.

“To see the floating LNG vessel start to take shape is so incredible,” said Chief Councillor Crystal Smith. “In just a few short years, the vessel will arrive on our shores where it will serve as a reminder of what can be done when Indigenous Nations are given a share and a say in how our resources are used for the benefit of our people and the environment.”

As disclosed, the decision-making from the outset was led by Haisla Nation’s values of sustainability and environmental protection, shared by its partner Pembina Pipeline. This is reflected in the selection of a floating facility to minimize environmental effects.

The completion of the FLNG vessel is scheduled for 2028, with Cedar LNG’s entry into operation targeted for late 2028. The LNG facility is set to have the capacity to process and liquefy 400 million standard cubic feet of natural gas per day and produce 3.3 million tons of LNG per year for international markets. 

Samsung Heavy Industries (SHI) and Black & Veatch were selected to provide engineering, procurement, and construction (EPC) for the FLNG, while GTT will design its tank.

“This is an exciting moment for Cedar LNG as it represents the official start of construction on what will be an innovative, world-class, lower-carbon floating LNG facility,” said Craig Day, Project Director at Cedar LNG. “This achievement reflects the extensive planning efforts of our partners – Haisla Nation and Pembina Pipeline – our project team, and Samsung Heavy Industries and Black & Veatch.”

Greenlighted 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 is set to be powered by clean hydroelectricity from British Columbia’s grid and produce what is described as ultra-low-carbon LNG.

The 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 LNG from the project is thought to have the potential to displace the use of higher-emitting forms of energy in Asia. In line with this, in March, ExxonMobil’s Asia Pacific subsidiary inked a deal to purchase around 1.5 million tonnes per annum (mtpa) of LNG from the facility once it enters commercial operation.

That same month, the project received backing from the government of Canada, amounting to up to CAD 200 million ($139.8 million).