
The 3.3-million tonnes per annum floating LNG project has 20-year take-or-pay tolling service agreements with ARC Resources and Pembina. (Source: Shutterstock)
Steelhead LNG said Dec. 23 it filed new legal proceedings against Cedar LNG, Pembina Pipeline Corp. and ARC Resources Ltd. in British Columbia over the $4 billion LNG project near Kitimat, British Columbia, Canada.
Steelhead alleges in the new claim that each of the defendants willfully and improperly exploited information supplied by Steelhead LNG to ARC Resources relating to the development of Cedar LNG, according to a Dec. 23 press release.
The lawsuit seeks to suspend ARC Resources' participation in the Cedar LNG project, secure damages from the defendants for the unauthorized use and exploitation of Steelhead LNG's information and obtain an injunction to prevent further wrongful acts, according to the release.
"It is evident to Steelhead that, without relying on ARC Resources' capacity commitment—enabled by what Steelhead believes to be a pattern of willful and wrongful conduct—Cedar LNG and Pembina would not have been able to secure the substantial financial commitments necessary to reach a positive final investment decision," said Victor Ojeda, president of Steelhead LNG. "While Steelhead remains open to pursuing an amicable resolution, ARC, Pembina, and Cedar have shown little interest in doing so. As a result, Steelhead has no choice but to seek judicial intervention."
Cedar LNG is majority-owned by the Haisla Nation with 50.1%. Pembina holds 49.9% ownership. The 3.3-million tonnes per annum floating LNG project has 20-year take-or-pay tolling service agreements with ARC Resources and Pembina.
Steelhead also said it is continuing patent infringement litigation in Korea against Cedar LNG and Samsung Heavy Industries related to Steelhead LNG's Korea patent.
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