Cedar LNG gets $140 million boost from Canada

Jonathan Wilkinson, Minister of Energy and Natural Resources, on behalf of Anita Anand, Minister of Innovation, Science and Industry, announced a contribution agreement under the Strategic Innovation Fund (SIF) of up to C$200 million for the Cedar LNG project.

Cedar LNG welcomed the government of Canada’s support, which is a “key component to advancing an innovative and sustainable project that will result in one of the lowest emitting LNG facilities in the world.”

In June last year, Canada’s Pembina Pipeline and the Haisla Nation took a positive final investment decision on their LNG project.

Since FID, marine terminal and pipeline right-of-way clearing was initiated and is near completion, according to Cedar LNG.

Moreover, marine terminal and pipeline construction is anticipated to start in the second quarter of 2025, with peak construction expected in 2026.

Cedar LNG said the development of the floating LNG unit is underway in Korea. 

The project’s anticipated in-service date is expected in late 2028.

Cedar LNG has secured 20-year take-or-pay liquefaction tolling services agreements with ARC Resources and Pembina for 1.5 mtpa of LNG each.

It also signed a 20-year take-or-pay fixed toll contract with ARC Resources.

As part of the agreement, ARC Resources will supply Cedar LNG with about 200 million cubic feet per day of Canadian natural gas for liquefaction at the Cedar LNG facility.

ARC Resources recently signed a long-term sale and purchase agreement with a unit of US energy giant ExxonMobil for volumes from the Cedar LNG project.

Under the SPA, ExxonMobil LNG Asia Pacific (EMLAP) will purchase all of ARC’s LNG offtake from the Cedar LNG project – about 1.5 million tonnes per annum – at international LNG pricing.