Canada’s Pembina says Cedar LNG FID may move into early 2024

Canada’s Pembina Pipeline and the Haisla Nation may move their planned final investment decision on the Cedar LNG export project from the fourth quarter of this year to early 2024.

In August, the partners postponed taking the decision from the third quarter to the fourth quarter.

Pembina and the Haisla Nation each own 50 percent in the Cedar LNG project.

Last year, US-based engineer Black & Veatch and South Korean shipbuilder Samsung Heavy Industries won the front-end engineering and design (FEED) contract for the project’s proposed floating liquefaction, storage and offloading unit (FLNG).

The $2.4 billion FLNG project will have a capacity of about 3 mtpa and will source natural gas from the prolific Montney resource play in northeast British Columbia.

Moreover, Cedar LNG plans to receive feed gas from the Coastal GasLink pipeline, which will supply the giant Shell-led LNG Canada export plant near Kitimat.

The floating LNG facility will also be located near the LNG Canada plant and will be powered by renewable electricity from BC Hydro.

Pembina said in its third-quarter report on Thursday that Cedar LNG “continues to progress key project deliverables”.

The project has secured the major regulatory approvals and signed non-binding memorandums of understanding for long-term liquefaction services with “investment grade counterparties” for the project’s total base liquefaction capacity, the firm said.

Pembina said remaining FID deliverables continue to progress, including finalizing the lump-sum engineering, procurement, and construction contract, the definitive liquefaction tolling agreements, and the inter-project agreements with Coastal GasLink and LNG Canada.

“Target FID continues to be by the end of 2023, however, given the complexity and sequencing of aligning the multiple work streams, which are required to facilitate the project financing, FID may move into early 2024,” Pembina said.

Most Popular

Venture Global’s CP2 LNG to start mobilization and site preparation

Venture Global LNG's CP2 LNG has received approval from the US FERC to start mobilization and other limited activities for the LNG project in Louisiana.

BP seals LNG SPA with India’s Torrent Power

A unit of UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with India's Torrent Power.

Cheniere kicks off Sabine Pass LNG maintenance

US LNG exporting giant Cheniere has started planned maintenance at its Sabine Pass LNG export facility in Louisiana.

More News Like This

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

Pembina CEO sees enough demand for Cedar LNG expansion

Canada’s Pembina Pipeline sees enough demand for a potential second phase of the Cedar LNG project, according to Scott Burrows, president and CEO of Pembina.

Cedar LNG gets $140 million boost from Canada

Canada’s Pembina Pipeline and the Haisla Nation have received up to C$200 million ($140 million) from the government of Canada for their $4 billion Cedar LNG project.

ARC Resources seals long-term LNG SPA with ExxonMobil

Canadian gas producer ARC Resources has signed a long-term sale and purchase agreement with a unit of US energy giant ExxonMobil for volumes from the Cedar LNG project in Canada.