Canada’s Pembina Pipeline and the Haisla Nation are joining forces on a proposed floating LNG export facility in Kitimat, British Columbia.
The new move comes after Pembina decided to “pause” its Jordan Cove LNG export terminal in Oregon.
Under the partnership deal revealed on Tuesday, Pembina would buy a 50 percent stake in the $2.4 billion Cedar LNG project.
Pembina would acquire the equity interests currently owned by PTE Cedar LP and Delfin Midstream, the duo said in a joint statement. Haisla will own the remaining 50 percent stake.
In addition, Pembina will assume operatorship of the project and has assembled accordingly a “world-class floating LNG team.”
The firm expects to invest about $90 million in Cedar LNG over the next 24 months, prior to a final investment decision.
This includes costs to acquire its interest in the partnership as well as pre-FID development costs, the statement said.
The Kitimat project will be located on Haisla-owned land in the Douglas Channel, one of the principal shipping routes on the British Columbia coast.
Moreover, the development will have a floating liquefaction unit of approximately 3 million tonnes per annum of LNG and will source natural gas from the prolific Montney resource play in northeast British Columbia.
Cedar LNG has secured a long-term transportation agreement on the Coastal GasLink pipeline for 400 million cubic feet per day of firm capacity.
Natural gas will arrive to the site through an approximately eight-kilometre-long pipeline that connects to the Coastal GasLink pipeline which would feed the Shell-led LNG Canada project.
Cedar LNG will largely target the Asia-Pacific market while the partners expect FID in 2023.
Subject to additional factors including regulatory and environmental approvals, the expected in-service date for the project is planned for 2027, the statement said.
