Pembina Pipeline, Haisla Nation Receive Approval to Construct Pipeline for Cedar LNG Project
(P&GJ) — The Haisla Nation and Pembina Pipeline Corp., partners in the development of the proposed Cedar LNG project, have announced that Cedar LNG has received its Environmental Assessment Certificate for an 8.5-km (5.3-mile) pipeline that will connect the project into the Coastal GasLink pipeline.
The partnership also signed a Memorandum of Understanding (MOU) with ARC Resources Ltd. for a long-term liquefaction services agreement.
Cedar LNG is a proposed floating LNG facility located on Haisla Nation-owned land in Kitimat, B.C. with the capacity to export three million tonnes per year of LNG. It is strategically positioned to leverage Canada's abundant and sustainable natural gas supply and deliver a lower-carbon energy option to global markets.
"The receipt of our EAC is the culmination of more than a decade of work by the Haisla Nation and marks a significant milestone for the Cedar LNG project and the Haisla Nation's journey towards economic self-determination," Crystal Smith, Chief Councillor for Haisla Nation, said. "With Cedar LNG, we are setting a new standard of responsible and sustainable energy development. Together with our partner, Pembina, we are committed to advancing an LNG project that protects the environment, respects Haisla Nation values, and meets the highest standards of social and environmental responsibility."
Cedar LNG made several innovative design decisions to minimize the project's environmental footprint and ensure it is one of the lowest-emitting LNG facilities in the world. One of the most important decisions was to power the facility with renewable electricity from BC Hydro. In addition, the choice of site location allows the project to leverage existing LNG infrastructure, including the Coastal GasLink pipeline, with which Cedar LNG has a long-term transportation agreement, a deep-water port, roads, and other infrastructure.
Critical to Cedar LNG's success to date has been the strong support of neighboring Nations. Years of collaboration and constructive engagement with these Nations have helped to ensure the project will be designed, constructed, and operated responsibly, while providing benefits through construction jobs and contracting, training opportunities, long-term employment, and other measures that will contribute to economic prosperity in the region.
Commercial Update
Cedar LNG has entered into an MOU for a 20-year liquefaction services agreement with ARC Resources. The parties are working towards finalizing a definitive agreement for 1.5 million tonnes of LNG per year, equivalent to approximately 200 million standard cubic feet per day of natural gas, or approximately half of Cedar LNG's production.
"We are pleased to partner with Cedar LNG on this important infrastructure project for Canada. Through responsible development, innovation, and collaboration, we can advance the export of more Canadian energy to global markets," Terry Anderson, president and CEO of ARC Resources, said. "This agreement is an important step forward in delivering our low-cost, low-emission natural gas to key demand markets, and increasing ARC's exposure to LNG-linked natural gas prices."
"We are pleased to have ARC Resources as Cedar LNG's first customer. ARC's asset quality, leading ESG performance and financial strength, are important attributes in an LNG partner and will help drive our project forward," said Doug Arnell, Cedar LNG Chief Executive Officer. "In the coming months, we will be focused on advancing work across four critical streams – engineering, regulatory, commercial discussions, and financing so that we are well positioned to deliver a project the Haisla Nation, Pembina, British Columbia, and the rest of Canada will be proud to showcase."
Cedar LNG continues to progress commercial discussions with other potential customers, all of which are investment grade counterparties, for long-term volume commitments.
A final investment decision for the project is anticipated in the third quarter of 2023.
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