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.