Canada’s Pembina Pipeline and the Haisla Nation have postponed a final investment decision on their Cedar floating LNG export project.
Pembina and the Haisla Nation each own 50 percent in the Cedar LNG project.
Last month, Pembina said that the partners may move the final decision on the LNG export project from the fourth quarter of this year to early 2024.
The duo also recently signed a heads of agreement with US-based engineer Black & Veatch and South Korean shipbuilder Samsung Heavy to secure access to shipyard capacity for their project.
Last year, Black & Veatch and SHI 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 a statement on Monday that the parties expect to finalize a lump sum engineering, procurement, and construction agreement prior to the end of the year, which will provide Cedar LNG with the necessary services to construct the project.
The company said that Cedar LNG continues to progress the key project deliverables, including definitive liquefaction tolling agreements, and inter-project agreements with Coastal GasLink and LNG Canada.
“Given the complexity and sequencing of aligning the multiple work streams required to facilitate the project financing, an FID is now expected by the end of the first quarter 2024,” the company said.