Cedar LNG, a partnership between the Haisla Nation and Canadian energy infrastructure company Pembina Pipeline, has selected South Korean shipbuilding major Samsung Heavy Industries (SHI) and U.S. LNG infrastructure solutions company Black & Veatch to provide engineering, procurement and construction (EPC) for the design, fabrication and delivery of the project’s floating LNG production unit (FLNG), subject to a final investment decision (FID).
Cedar LNG said that with the awarding of the EPC contract, the project is at an advanced stage of planning and development, with FID expected by the end of the first quarter of 2024.
Subject to a positive FID, onshore construction work for the project is estimated to commence as early as the second quarter of 2024, with the delivery of the FLNG and substantial completion expected in 2028.
Doug Arnell, Cedar LNG CEO, commented: “This is a critical milestone on our path towards a FID for Cedar LNG, the first Indigenous majority-owned LNG project in the world. 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.”
To note, before the official announcement from Cedar LNG, SHI said the company received a $1.5 billion order to build an FLNG facility in North America. However, it didn’t reveal the name of the shipper at the time.
The floating LNG facility is to be located on Haisla Nation-owned land in Kitimat, B.C., Canada, with the capacity to export three million tons per year of LNG.
Cedar LNG has major regulatory approvals and signed memorandums of understanding (MoUs) for long-term liquefaction services for the project’s total LNG capacity.
In the last quarter of 2023, the Haisla Nation and Pembina Pipeline signed heads of agreement (HoA) with SHI and Black & Veatch to secure access to shipyard capacity for the project.
Specifically, the HoA provided Cedar LNG, on an exclusive basis with SHI and Black & Veatch, secure access to shipyard capacity to meet Cedar LNG’s target commercial operations date.