LNG

Pembina Pipeline Corp., the Canadian natural gas and energy transportation and terminals company, and its Cedar floating LNG partner, the Haisla First Nation of British Columbia, have reached a positive investment decision and will proceed with the near-shore FLNG project on Haisla traditional territory on the Douglas Channel near Kitimat.

Chart Industries, the US LNG equipment-maker and industrial gases company, has received a key order from the Cedar floating LNG project being developed in the Canadian Pacific province of British Columbia.

The Ksi Lisims LNG Partnership, a development joint venture of the Nisga’a Nation, Rockies LNG and Western LNG LLC for a floating liquefaction and export plant near the port of Prince Rupert in British Columbia, has signed a 20-year sale and purchase agreement with the Shell subsidiary, Shell Eastern Trading.

Under the SPA, Shell will purchase 2 million tonnes of LNG per annum from the Ksi Lisims project on a free-on-board basis in what is the first LNG offtake agreement executed by the Ksi Lisims venture.

The Ksi Lisims FLNG platform will receive feed gas from the prolific shale-gas basin of northeast BC. The venture proposes to produce 12 MTPA at Wil Milit, located north of Prince Rupert and near the Nisga’a tribal village of Gingolx.

Ksi Lisims LNG’s governance structure provides each project proponent, the Nisga’a Nation, Rockies LNG and Western LNG, with input into project development, management and operations.

Innovative

“The Ksi Lisims LNG project is an innovative development for North America” said Davis Thames, President and CEO of Western.

The project will use a floating production units built by Samsung Heavy Industries and an all-electric process technology developed by Black & Veatch.

“The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry. We look forward to continuing to work with Shell and our other customers as we move toward reaching a final investment decision,” Thames stated.

“Ksi Lisims LNG will play an important role in the long-term economic growth of the Nisga’a Nation and other nations with which we work and we remain committed to being good partners with them,” he explained.

Thames noted that the work with the Nisga’a Nation and Rockies LNG had produced a “unique value proposition” for customers.

Steve Hill, Executive Vice President of Shell Energy, said that LNG was a critical pillar of global energy security and global demand is set to increase in the years to come.

Diverse portfolio

“We are pleased to sign this agreement with Ksi Lisims LNG which will help Shell to continue providing diverse and flexible LNG supply to its customers,” Hill stated.

Eva Clayton, president of the Nisga’a Lisims Government said her people had been striving to grow economic opportunities.

“Ksi Lisims LNG is the cornerstone of a brighter future for our people. As the project continues to pick up momentum, evidenced by this agreement with Shell, the Nisga’a people are now able to envision the opportunity and prosperity that Ksi Lisims LNG will bring,” Clayton declared.

Ksi Lisims LNG said it was represented by international law firm Baker Botts LLP in the drafting and negotiation of the SPA.

“We’re proud to be working to deliver the world’s cleanest natural gas to markets that need it most,” said Charlotte Raggett, President and CEO of Rockies LNG.

“Canada is an ideal global energy supplier, producing the world’s most responsible and lowest-emission natural gas at the shortest distance from Asia in the Americas,” she added.

Pembina Pipeline Corp., the leading Canadian energy pipeline and midstream company with a network of gas gathering, processing and energy export terminals in North America has given a business update including spending plans and a final investment decision date for the planned Cedar LNG project in British Columbia.

The Canadian native American Haisla Nation of British Columbia and Pembina Pipeline Corp., who are partners in the development of Cedar LNG, have signed an accord with third parties to move forward with the venture proposed for the Douglas Channel.

Stonepeak, the New York-based investment firm specializing in energy infrastructure, has completed the acquisition of a 50 percent interest in the Key Access Pipeline System (KAPS), a Canadian natural gas liquids pipeline that will impact future feed-gas needs for LNG exports from Western Canada.

TC Energy Corp., the future supplier of LNG feed-gas for plants being developed in the Canadian province of British Columbia, has signed option agreements to sell a 10 percent equity interest in the Coastal GasLink Pipeline partnership to Indigenous communities across the project corridor.

The leader of the Haisla First Nation in British Columbia, Chief Councillor Crystal Smith, along with Pembina Pipeline Corp. Interim President and Chief Executive Scott Burrows and the Cedar LNG CEO Doug Arnell have spoken with optimism about the future development of the Cedar LNG project as it awarded an engineering contract.

Chief Councillor Smith and Pembina's Burrows said the 50-50 partnership’s joint venture had reached critical points in developing the floating LNG export plant near Kitimat in BC.

The FLNG project will be located in the Douglas Channel  and is expected have a liquefaction capacity of up to 4 million tonnes per annum of LNG.

Feed gas for Cedar FLNG will be sourced from the prolific Montney natural gas resource play in northeast BC.

Cedar LNG said it was pleased to announce an agreement with liquefaction technology firm Black & Veatch and South Korean shipbuilder Samsung Heavy Industries (SHI) for the front-end engineering and design (FEED) of the project's proposed floating liquefaction, storage and offloading units.

“Cedar LNG is rooted in meaningfully creating a low-carbon, Indigenous-led business that respects local values and protects the environment,” said Cedar's CEO Arnell.

“The project's low-carbon footprint, coupled with the use of Black & Veatch and Samsung's expertise and technology will result in a state-of-the-art facility the Haisla Nation, British Columbia and Canada can be proud of,” he stated.

FID in 2023

Cedar LNG expects to make a final investment decision in 2023 following completion of the environmental assessment process.

Subject to additional factors, including regulatory and other approvals, the expected in-service date for the project is 2027.

Both Smith and Burrows said their venture was strategically positioned to leverage Canada's abundant natural gas supply and “provide a critical, Indigenous-partnered solution” to support the global clean energy transition.

With recent advancements in the project's regulatory and engineering development, Smith outlined what it meant for the region.

“The Cedar LNG project will be the largest First Nation-owned infrastructure project in Canada, creating jobs, contracting and other economic opportunities for the Haisla Nation, the community of Kitimat, neighbouring Indigenous Nations, and the local region,” stated Smith.

“Cedar LNG represents long-term growth for our region in a way that protects our land and environment, and we are excited to see the project move forward in its environmental assessment process with innovative technology and reduced environmental footprint,” she explained.

Review phase

The application for an Environmental Assessment Certificate (EAC) was recently submitted to the British Columbia Environmental Assessment Office, moving the project into the 180-day application review phase.

This key landmark follows detailed engineering studies and engagement with Indigenous and local communities.

“The submission of our application for an EAC represents another significant step forward in exporting Canadian LNG to overseas markets, while supporting long-term prosperity for the Haisla Nation and the region,” explained Pembina’s Burrows.

“Each time we've returned to our design, whether to include community input or account for leading technology, we've made important improvements that have resulted in a superior project that respects the values of the local community and minimizes environmental effects,” declared the Pembina Interim CEO.

Pembina Pipeline Corp., the Canadian company whose liquefied natural gas export project in Oregon was cancelled by US regulators, said it was continuing with an alternative venture, the Cedar LNG project in British Columbia, in a strategic partnership agreement signed with the Haisla First Nation of native North Americans.

TC Energy, the leading North American pipeline company for oil and gas, said the Coastal GasLink pipeline for LNG Canada in British Columbia continued to increase significantly project costs and completion timetables compared with original schedules.

The costs and completion issues have arisen as a result of scope changes, previous permit delays compared to the original construction schedule and the impacts from Covid-19, including a BC provincial health order.

Coastal GasLink is in dispute with LNG Canada with respect to the recognition of certain costs and the impacts on project schedules.

“Coastal GasLink has sought and will continue to mitigate cost increases and schedule delays and expects incremental costs will be included in the final pipeline tolls, subject to certain conditions,” explained TC Energy.

Construction of the Royal Dutch Shell-led LNG Canada project is 50-percent complete after beginning three ago at the site in Kitimat, 640 kilometres north of Vancouver.

Partners

Shell and its four partners, Mitsubishi Corp. of Japan, Malaysian energy company Petronas, Chinese major PetroChina and Korea Gas Corp., are investing C$40 billion (US$30.2Bln) to build the plant and associated facilities.

The initial two Trains will produce 14 million tonnes per annum of LNG. There is the possibility of expanding the facility to include up to four processing units in the future.

The engineering, procurement and construction contractors are JGC Corp of Japan and Fluor Corp. of the US.

TC Energy, based in Calgary, Alberta-based company reported on the Coastal GasLink pipeline as it also posted third-quarter net income of C$779 million (US$625), or C$0.80 per share, compared with net income of C$904 million, or C$0.96 per share, for the same period in 2020.

“During the first nine months of 2021, our diversified portfolio of essential energy infrastructure assets continued to perform very well and reliably meet North America's growing demand for energy,” said François Poirier, TC Energy’s President and Chief Executive.

“Comparable earnings of $3.21 per common share were 5 percent higher compared to the same period last year while comparable funds generated from operations totaled $5.3 billion,” added Poirier.

“Both amounts reflect the strong performance of our assets and the utility-like nature of our business together with contributions from projects that entered service in 2020 and 2021,” stated the CEO.

TC Energy said it was also in dispute over certain Mexican natural gas pipelines.

The issues concern the Tula and Villa de Reyes pipelines. The Mexican Comisión Federal de Electricidad (CFE) initiated arbitration in June 2019 for the Tula and Villa de Reyes projects, disputing fixed capacity payments due to “force majeure” events.

“Arbitration proceedings are currently suspended through December 31, 2021 while management advances settlement discussions with the CFE,” explained TC Energy.

On the cancelled Canada-US XL oil pipeline from Ontario to the US state of Nebraska, TC Energy has been paying higher interest expense primarily as a result of its cessation of Keystone following the revocation of the Presidential Permit in January 2021.