Canada’s Pembina Pipeline and the Haisla Nation are now expecting to take a final investment decision on the Cedar LNG export project in the fourth quarter of 2023.
Pembina said earlier this year that the company and the Haisla Nation planned to take the FID by the third quarter of 2023.
“A final investment decision is now expected in the fourth quarter of 2023,” Pembina said in its second-quarter results report on Thursday.
Pembina and the Haisla Nation each own 50 percent in the Cedar LNG project.
In February last year, US-based engineer Black & Veatch and South Korean shipbuilder Samsung Heavy Industries won a 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.
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.
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In March this year, Cedar LNG received its environmental assessment certificate (EAC) from the B.C. Environmental Assessment Office, and has signed a memorandum of understanding with Canada’s ARC Resources for a long-term liquefaction services agreement.
Cedar LNG also received on July 6 its LNG facility permit from the BC energy regulator.
In addition to the previously disclosed memorandum with ARC Resources, Cedar LNG has “signed incremental non-binding MOUs with investment grade counterparties for long-term liquefaction services and is fully subscribed in relation to the project’s total capacity,” Pembina said in the quarterly report.
“Work towards the signing of definitive commercial agreements is ongoing,” the firm said.
Pembina noted that Cedar LNG elected to progress a second FEED process for the floating LNG vessel in late 2022 and has been waiting for that work to progress to the same stage as the original FEED.
“In conjunction with detailed commercial discussions and ongoing negotiations between LNG Canada and Coastal GasLink, this has resulted in the anticipated final investment decision being revised to the fourth quarter of 2023,” the firm said.