LNG

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.

Pembina Pipeline Corp., the Canadian energy transportation company and joint venture partner in the Cedar Floating LNG project in British Columbia, said it had appointed former Chief Financial Officer Scott Burrows as the company's permanent President and Chief Executive and had concluded an executive search process.

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 developer of the Cedar floating LNG project in British Columbia along with the Haisla First Nation, has announced that President and Chief Executive Mick Dilger had stepped down.

Pembina Pipeline Corp. of Canada, the owner of the only approved LNG export project on the West Coast of the United States at Coos Bay in Oregon, has boosted its finances with an $800 million unsecured revolving credit facility.

With the addition of the credit note, Pembina now has $3.3 billion in revolving credit capacity and around $2.3Bln in available cash and unutilized debt facilities.

Pembina said the new credit line would be available for general corporate purposes, thereby providing additional liquidity and flexibility for its activities.

Pembina’s Jordan Cove LNG liquefaction and export plant in Oregon and its Pacific Connector Gas Pipeline project were approved in March 2020 by the US Federal Energy Regulatory Commission.

Pembina noted in its financial update that over the next two years, the company’s debt maturities are modest and include $73M in 2020 and $800M distributed across three instruments throughout 2021.

Calgary, Alberta-based Pembina acquired the Jordan Cove LNG project in late 2017 in its takeover of another Canadian company, Veresen Inc.

The project includes a 230-mile pipeline which would traverse four counties in Southern Oregon on the route to the liquefaction plant.

The liquefaction plant and other facilities are planned for a 200-acre site and comprise five small-scale Trains each with 1.5 million tonnes per annum of output for a total of 7.8 MTPA.

“In today's challenging and uncertain environment, ensuring ample liquidity is of utmost importance and I would like to acknowledge and thank our key lender group for their swift response,” said Scott Burrows, Pembina's Senior Vice President and Chief Financial Officer.

“We enjoy productive, long-term relationships with our lenders and value their deep understanding of our business,” added Burrows.

“Over the past two weeks we have taken decisive and unprecedented action to preserve our strong balance sheet, protect our ‘BBB’ credit rating and ensure we have the liquidity to fund our business until market conditions stabilize,” stated the CFO.

The LNG venture is only one of several North American projects Pembina is developing and they include the Prince Rupert liquefied petroleum gas export terminal on Watson Island in the Canadian Pacific Coast province of British Columbia.

That project is a rail terminal to move LPG from rail cars to ships destined for international markets.

There is no on-site processing or refrigeration, and smaller volumes for storage and movement require a smaller footprint relative to other energy facilities proposed on the West Coast.

However, Jordan Cove LNG has multiple facilities, including two full-containment storage tanks with total capacity of 320,000 cubic metres, gas treating infrastructure, an export jetty and access to more than 25 billion cubic feet per day of gas supply from Western Canada and the US Rockies.

The project’s affiliated Pacific Connector pipeline will have a 36-inch diameter with capacity to transport up to 1.2 billion cubic feet of natural gas per day.

Feed-gas for Jordan Cove would be sourced at the Malin Hub, creating a new outlet for natural gas from areas such as the Rockies Basin.

The export plant is expected to be visited by about 120 LNG carriers per year and Pembina has signed preliminary accords with Jera Co. Inc. and Itochu Corp. of Japan for the supply of cargoes. 

Pembina Pipeline Corp., the Canadian owner of the Jordan Cove LNG export project in the US northwest state of Oregon, said it would be developing additional pipeline and terminal infrastructure in the provinces of Alberta and British Columbia while pursuing the US liquefaction venture.