LNG News Editor:
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.
The Cedar project with nameplate capacity of 3.3 million tonnes per annum is strategically positioned to leverage Canada’s abundant natural gas supplies and ship cargoes to Asia.
“The Haisla Nation, with our partner Pembina, have made history as the world’s first Indigenous community to develop an LNG facility as majority owners,” said Crystal Smith, Chief Councillor of the Haisla Nation.
“Because of our Nation’s determination and environmental leadership, Cedar LNG will make the most significant mark on economic reconciliation ever in our country,” declared Smith.
Economic progress
“With Cedar LNG, we have proven that Indigenous communities can successfully forge a path to economic independence and generational prosperity,” Smith added.
The engineering, procurement and construction contractors for Cedar LNG are Samsung Heavy Industries of South Korea and US firm Black and Veatch, based near Kansas City in Missouri.
“With this fundamental financial milestone achieved, we’re eager to continue advancing this project by leveraging our industry-leading PRICO technology and topside expertise in floating LNG infrastructure,” stated Brady Hays, Senior Vice President for Black and Veatch’s fuels and natural resources sector.
“We’re proud to be associated with this project, our partner Samsung Heavy Industries, and other stakeholders as all of us pursue and deploy technologies that help lower-carbon footprints,” added Hays.
Cedar LNG is majority-owned by the Haisla Nation in partnership with Pembina with 50.1 percent and 49.9 percent ownership respectively.
“The project is expected to be funded with asset-level debt financing for 60 percent of the project cost,” said Pembina.
“Cedar LNG has secured a construction term loan from a syndicate of banks,” the company added.
Equity funding
The remaining 40 percent of the costs of the project are expected to be financed through equity contributions from both partners.
The Haisla Nation has obtained committed capital through the First Nations Finance Authority to fund their 20 percent equity contribution to the project.
“Pembina continues to anticipate its equity contribution will be funded from cash flow from operating activities,” said the Calgary, Alberta-based company.
“Pembina expects no material change to its 2024 Cedar LNG equity contributions disclosed previously, with no incremental post-FID contributions in 2024 anticipated,” it added.
