Cedar LNG finalizes investment for $4B Kitimat LNG project

FORT ST. JOHN, B.C. — Cedar LNG has announced a final investment decision regarding their $4 billion floating liquified natural gas (LNG) project situated in Kitimat, the company has said in a release on June 25th.

Cedar LNG is a partnership between Pembina Pipeline and Haisla Nation. Once built, the project will be a floating facility capable of producing 3.3 million tonnes per annum in traditional Haisla territory.

In a video released on the company’s website, Haisla Nation’s Chief Councillor Crystal Smith commented on her Nation’s future with the first Indigenous-owned and operated project on the horizon.

“It has been a journey,” Smith said in the video. “This is essentially trailblazing a path for economic independence.”

Others to comment on the announcement included Pembina president and Chief Executive Officer Scott Burrows.

According to Burrows, the project perfectly aligns with his company’s strategy for the future.

“This is a historic moment, and we are proud to be moving forward with a project that will deliver industry-leading, low-carbon, cost-competitive Canadian LNG to overseas markets,” said Burrows.

“The Cedar LNG Project will enhance the resiliency of Pembina’s business, provide much-needed new egress and greater access to global markets for our customers, and reflect the Haisla Nation and Pembina’s shared values and commitment to supporting a more sustainable future.”

Funding for the project will come from asset-level debt financing for approximately 60 per cent of the project, according to the release. Cedar has lined up construction term loans from a network of banks.  The remaining costs are set to come from equitable contributions from both partners.

The company made several design decisions to minimize the project’s carbon footprint, including powering the facility via hydroelectricity through BC Hydro’s network. 

Its location also allows the project to leverage current LNG infrastructure and access the Coastal GasLink pipeline, which runs from Dawson Creek to Kitimat.

The project is expected to be completed by 2028.  For further details, see the release here.