Cedar LNG issues Notice to Proceed; commercial offtake secured

Source: www.gulfoilandgas.com 4/5/2024, Location: North America

Cedar LNG announced that it has issued a Notice to Proceed (NTP) to the engineering, procurement, and construction (EPC) contractors following the finalization of long-term commercial offtake agreements. These critical milestones allow the project to proceed to secure financing, which is required prior to making a final investment decision (FID), expected by the middle of 2024.

“Today’s achievements mark an exciting time for our Nation as we seek to make Cedar LNG – the world’s lowest carbon and first Indigenous majority-owned LNG Facility – a reality in the coming months,” said Crystal Smith, Chief Councillor for Haisla Nation. “I am incredibly grateful to our Nation, all levels of government, Pembina and all our partners who have supported our journey to advance a project that protects our environmental and cultural values, while delivering prosperity for decades to come.”

“We are on-track to deliver an Indigenous majority owned, best-in-class LNG facility – one that will benefit the Haisla Nation, Pembina and its customers, the region, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy,” said Scott Burrows, Pembina’s President and Chief Executive Officer.

The issuance of today’s NTP directs our EPC Contractor, Samsung Heavy Industries and Black & Veatch, to finalize engineering and design for, and commence construction of, Cedar LNG’s state-of-the-art floating LNG facility (FLNG). Subject to a FID, once complete, the FLNG unit will be transported from Korea to the Cedar LNG site in Haisla traditional territory in the Douglas Channel, signaling a step change for the LNG industry and Indigenous people everywhere.

With major development milestones achieved, Cedar LNG is preparing for construction, with pre-FID early works commencing in May 2024, including tree clearing and rough grading activities at our proposed marine terminal near Kitimat.

The Project is continuing to progress towards a FID by the middle of 2024, with an anticipated in-service date in late 2028. Further details are provided below.

Commercial Offtake Secured
A 20-year take-or-pay fixed toll contract has been signed with ARC Resources Ltd. (“ARC”) for 1.5 million tonnes per annum (“mtpa”). As part of the agreement, ARC will supply Cedar LNG with approximately 200 million cubic feet per day of sustainable, Canadian natural gas for liquefaction at the environmental leading Cedar LNG facility. Having ARC participate in Cedar LNG is a testament to the value proposition this Project has on a global scale.

Pembina has executed an identical bridging agreement with Cedar LNG for 1.5 mpta of capacity. Commercial offtake discussions are continuing with multiple other customers as Pembina intends to assign its capacity to a third-party following a positive FID.


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