Steelhead LNG launches new legal action against Cedar LNG

Steelhead LNG announced on Monday the filing of new legal proceedings against Cedar LNG, Pembina Pipeline, and ARC Resources in British Columbia in relation to the Cedar LNG project.

The company alleges in this new claim that “each of the defendants wilfully and improperly exploited information supplied by Steelhead LNG to ARC Resources relating to the development of liquefied natural gas facilities in British Columbia for the benefit of Cedar LNG.”

“The lawsuit seeks to suspend ARC Resources’ participation in the Cedar LNG project, secure damages from the defendants for the unauthorized use and exploitation of Steelhead LNG’s information, and obtain an injunction to prevent further wrongful acts,” the company said.

Victor Ojeda, president of Steelhead LNG said, “it is evident to Steelhead that, without relying on ARC Resources’ capacity commitment—enabled by what Steelhead believes to be a pattern of wilful and wrongful conduct—Cedar LNG and Pembina would not have been able to secure the substantial financial commitments necessary to reach a positive final investment decision.”

“While Steelhead remains open to pursuing an amicable resolution, ARC, Pembina, and Cedar have shown little interest in doing so. As a result, Steelhead has no choice but to seek judicial intervention,” Ojeda said.

In June, Canada’s Pembina Pipeline and the Haisla Nation have taken a positive final investment decision on their $4 billion Cedar LNG project.

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.

In April, Cedar LNG issued a notice to proceed to Samsung Heavy and Black & Veatch for Cedar LNG’s floating LNG production unit following the finalization of long-term commercial offtake agreements.

Samsung Heavy is responsible for the hull of the FLNG and topside plant processes, while Black & Veatch will provide its PRICO technology.

South Korea action and new patents

Separately, Steelhead LNG is continuing its patent infringement litigation in South Korea against Cedar LNG and Samsung Heavy Industries in relation to its Korea patent, the company said.

Steelhead LNG said on Monday it was also recently issued three new patents in the United States, protecting expanded versions of its near-shore LNG facility design.

In September this year, Steelhead LNG announced it launched patent infringement proceedings against Cedar LNG and Samsung Heavy Industries in South Korea.

Steelhead LNG has filed a lawsuit with the Seoul Central District Court, alleging that Cedar LNG’s and Samsung Heavy’s activities infringe on Steelhead LNG’s Korean patent, the company said in a statement.

Earlier this year, Steelhead LNG secured patents in the United States and South Korea for its proprietary near-shore floating LNG production facility.

These patents are in addition to the patents already issued to Steelhead LNG in Canada, Australia, and Mexico.