With environmental approval in place, Canada’s Cedar LNG inks long-term liquefaction services deal

Cedar LNG, Canada’s first Indigenous majority-owned LNG facility, has received its environmental assessment certificate (EAC) from the British Columbia (B.C.) Environmental Office, and has signed a memorandum of understanding with ARC Resources for long-term liquefaction services.

The proposed Cedar LNG project is a partnership between the Haisla Nation and Canadian energy infrastructure company Pembina Pipeline. The floating LNG facility is to be located on Haisla Nation-owned land in Kitimat, B.C., with the capacity to export three million tonnes per year of LNG.

Cedar LNG incorporates several design decisions made to minimise the project’s environmental footprint and ensure it is one of the lowest-emitting LNG facilities in the world. According to developers, one of the most important decisions was to power the facility with renewable electricity from BC Hydro.

In addition, the choice of site location allows the project to leverage existing LNG infrastructure, including the Coastal GasLink pipeline, with which Cedar LNG has a long-term transportation agreement, a deep-water port, roads, and other infrastructure.

Cedar LNG also received its first permit from the BC Energy Regulator for the approximately 8.5-kilometre pipeline that will connect the project into the Coastal GasLink pipeline.

Commenting on the environmental permit, Crystal Smith, Chief Councillor for Haisla Nation, said: “The receipt of our EAC is the culmination of more than a decade of work by the Haisla Nation and marks a significant milestone for the Cedar LNG project and the Haisla Nation’s journey towards economic self-determination.

“With Cedar LNG, we are setting a new standard of responsible and sustainable energy development. Together with our partner, Pembina, we are committed to advancing an LNG project that protects the environment, respects Haisla Nation values, and meets the highest standards of social and environmental responsibility.”

Scott Burrows, Pembina’s President and CEO, remarked: “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. Pembina is proud of its long history of safe and reliable operations, and we look forward to contributing our expertise as we work together to bring Canadian LNG to the world.”

Upon announcing the environmental approval, Cedar LNG also revealed it has entered into an MoU with ARC Resources which outlines an anticipated 20-year agreement to supply and liquefy approximately 200 million standard cubic feet per day (MMcf/day) of natural gas with the project, resulting in the equivalent of 1.5 million tonnes per annum of LNG or approximately one half of the facility’s total production.

“We are pleased to partner with Cedar LNG on this important infrastructure project for Canada. Through responsible development, innovation, and collaboration, we can advance the export of more Canadian energy to global markets,” said Terry Anderson, President and CEO of ARC Resources. “This agreement is an important step forward in delivering our low-cost, low-emission natural gas to key demand markets, and increasing ARC’s exposure to LNG-linked natural gas prices.”

Doug Arnell, Cedar LNG CEO, added that in the coming months, the project will be focused on advancing work across four critical streams – engineering, regulatory, commercial discussions, and financing.

A final investment decision for the project is anticipated in the third quarter of 2023.