LNG

Samsung Heavy Industries (SHI), the South Korean shipbuilder, has put a value of US$1.5 billion on the floating liquefied natural gas (FLNG) facility recently ordered for the Canadian Cedar LNG joint venture in the Douglas Channel near Kitimat in British Columbia and modelled on an African FLNG vessel.

Jan 5 (LNGJ) - The Haisla Nation and Pembina Pipeline Corp., equal partners in the development of the proposed Cedar LNG project in the Douglas Sound near Kitimat in British Columbia, have selected South Korea’s Samsung Heavy Industries and US firm Black & Veatch to provide engineering, procurement and construction for the design, fabrication and delivery of the project's floating LNG (FLNG) production unit, subject to a final investment decision.

   “This is a critical milestone on our path towards an FID for Cedar LNG, the first Indigenous majority-owned LNG project in the world,” stated Doug Arnell, Cedar LNG Chief Executive. “We have secured world-class FLNG expertise and look forward to working with SHI and Black & Veatch to build an LNG facility with one of the cleanest environmental profiles in the world that will usher in a new era of low carbon, sustainable LNG production,” Arnell added. Cedar LNG noted that it had major regulatory approvals, had signed memoranda of understanding for long-term liquefaction services for the project's total LNG capacity and expected an FID in the first quarter 2024.

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.

Pembina Pipeline Corp. and the Haisla First Nation from Kitimat in British Columbia have received environmental approvals to proceed with the near-shore Cedar LNG project on the Douglas Channel and have also signed a feed-gas tolling accord.

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.