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In June, Pembina and the Haisla Nation took a positive final investment decision on the LNG project which is expected to be in service in late 2028.
The Haisla Nation has a 50.1 percent stake and Pembina owns 49.9 percent in the project which includes the construction of a floating LNG facility with a nameplate capacity of 3.3 million tonnes per annum (mtpa), located in the traditional territory of the Haisla Nation, on Canada’s West Coast.
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 compatriot ARC Resources.
As part of the agreement, ARC will supply Cedar LNG with about 200 million cubic feet per day of Canadian natural gas for liquefaction at the Cedar LNG facility.
Pembina has executed an identical bridging agreement with Cedar LNG for 1.5 mtpa of capacity and is working to assign its contracted capacity to a third-party.
Ramping up marketing efforts
Pembina’s senior VP and corporate development officer, Stuart Taylor, provided an update regarding the talks with potential offtakers during the company’s Q2 earnings call on August 9.
“So we’re now following the FID announcement and progress. We are ramping up our marketing efforts, looking at the remaining capacity of Cedar,” he said.
“I will say that as our project became more real with the FID announcement, our interest is high,” Taylor said.
“We’ve been working with a number of potential off takers that we’ve had conversations for a long period of time, but we do have some renewed and new interest coming in as well.,” he said.
“So we’re excited and optimistic of progressing those conversations to completion with a target to have as much of that completed in 2024. So we’re optimistic and excited and continue to make progress with potential offtakers,” he said.
Cedar LNG contracts
In April, Cedar LNG issued a notice to proceed to Samsung Heavy Industries and Black & Veatch for Cedar LNG’s floating LNG production unit following the finalization of long-term commercial offtake agreements.
SHI is responsible for the hull of the FLNG and topside plant processes, while Black & Veatch will provide its PRICO technology.
French LNG containment giant GTT recently also said it has secured a tank design order from Samsung Heavy for the FLNG.
Under the deal, GTT will design the tanks of this FLNG, which will have a total capacity of 180,000 cbm, and will incorporate GTT’s Mark III Flex membrane containment system.
Also, Baker Hughes has secured an order from Black & Veatch to supply the LNG project with electric driven liquefaction technologies, while Chart will provide natural gas liquefaction cold boxes and brazed aluminum heat exchangers.