The project is developing a floating LNG (FLNG) processing facility and marine export terminal to boost the country’s export capacity and connect Canadian LNG to markets in Asia. (Source: Shutterstock)
The Government of Canada has pledged to contribute up to $200 million to develop Cedar LNG Partners LP’s $5.96 billion Cedar LNG Project.
The contribution under the Strategic Innovation Fund is part of Canada’s initiatives to diversify Canada’s economy and support Indigenous economies.
The Cedar LNG Project, located in Kitimat, British Columbia, is a partnership between the Haisla Nation (50.1% ownership) and Pembina Pipeline Corp. (49.9%). The project is developing a floating LNG (FLNG) processing facility and marine export terminal to boost the country’s export capacity and connect Canadian LNG to markets in Asia.
“Cedar LNG is a powerful example of how industry, Indigenous nations and governments can work together to deliver much-needed Canadian energy to the world,” said Pembina President and CEO Scott Burrows. “Together with our partner, the Haisla Nation—and with strong support from the Government of Canada—Cedar LNG will bring industry‑leading, low-carbon, cost-competitive Canadian LNG to overseas markets, contributing to global energy security and creating jobs and economic growth, all while upholding the highest standards of social and environmental responsibility.”
Aside from the Canadian government’s financing, 60% of the project cost will be funded with asset-level debt financing, the partnership has previously said. The First Nations Finance Authority will fund the Haisla Nation’s 20% equity contribution and Pembina will fund its portion of equity from operational cash flow.
Once operational, Cedar LNG will be able to process and liquefy 400 MMscf/d of natural gas and produce 3.3 million tonnes per annum of LNG for international markets.
Pembina and the Haisla Nation made a $4.4 billion (CA$5.4 billion) final investment decision on Cedar LNG in June 2024. Cedar LNG secured 20-year, take-or-pay liquefaction tolling services agreements with ARC Resources Ltd. and Pembina for 1.5 mtpa each. ARC’s offtake will go to Exxon Mobil Asia Pacific Pte. Ltd.
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