Pembina Pipeline Corporation will acquire a 50% stake in Canada’s proposed Cedar liquified natural gas (LNG) project, and will develop the LNG facility in British Columbia in partnership with the indigenous group, The Haisla Nation, according to a press release.
Pembina expects to invest about $90 million in Cedar LNG over the next 24 months, which includes costs to acquire its interest in the project as well as development costs prior to the final investment decision (FID). The estimated gross project cost of Cedar LNG is $2.4 billion, and the FID is expected to be made in 2023.
Per the statement, the development project will have a liquefaction capacity of about three million tons per year (mmt/y) of LNG, and will source natural gas from the prolific Montney resource play in northeast British Columbia. Cedar LNG has also secured a long-term transportation agreement on the Coastal GasLink pipeline for 400 million cubic feet per day (mmcf/d) of firm capacity. Natural gas will be delivered to the development project site through an approximately eight-kilometer-long pipeline that connects to the Coastal GasLink pipeline.
Crystal Smith, Haisla Nation, Chief Councillor, stated: “Pembina’s long history of safe, reliable operations, and engagement with local communities made them the distinct choice for Cedar LNG. With a strong partnership, Cedar LNG will bring tremendous economic opportunities and benefits ensuring the Haisla people have control of our own future.”
Stu Taylor, Pembina’s Senior Vice President, Marketing and New Ventures and Corporate Development Officer, added: “We believe that environmental stewardship, Indigenous prosperity and inclusion, and mutual economic benefit are the cornerstones of future energy infrastructure development in Canada, and we are honored to have the opportunity to work with the Haisla Nation to produce Canadian LNG.”