The pairing of South Korea’s Samsung Heavy Industries and US contractor Black & Veatch early last year won the FEED contract for the 3 million tonnes per annum Haisla Nation-led Cedar FLNG project, which is targeting start-up in 2027.
However, Cedar LNG has just revealed that late last year it chose to progress a second FEED study for the floating liquefaction vessel and “has been waiting for that work to progress to the same stage as the original FEED”.
“In conjunction with detailed commercial discussions and ongoing negotiations between LNG Canada and Coastal GasLink, this has resulted in the anticipated final investment decision being revised to the fourth quarter of 2023,” the company confirmed.
Cedar LNG most recently had been aiming for project sanction before the end of September.
Upstream has approached Cedar LNG for details on who is performing the second FEED study for the FLNG vessel.
The Haisla Nation has formed a partnership with Canada’s Pembina Pipeline Corporation to develop the proposed Cedar LNG project, that Pembina said is strategically positioned to leverage Canada's abundant natural gas supply and British Columbia's growing LNG infrastructure to produce industry-leading low-carbon, cost-competitive Canadian LNG for overseas markets.
“Cedar LNG will provide a valuable outlet for WCSB (Western Canadian Sedimentary Basin)
natural gas to access global markets, and it is expected to achieve higher prices for Canadian producers, contribute to lower overall emissions, and enhance global energy security,” said Pembina.
“Given that Cedar LNG will be a floating facility, manufactured in the controlled conditions of a shipyard, it is expected that the project will have lower construction and execution risk.”
The Cedar LNG project will be powered by hydropower from British Columbia, which is expected to make it one of the greenest liquefaction facilities globally.
Cedar LNG last month received its LNG Facility Permit from the BC energy regulator in July 2023, which followed receipt of its Environmental Assessment Certificate from the province’s Environmental Assessment Office, and a pipeline permit for the Cedar LNG Pipeline connection to the Coastal GasLink Pipeline.
Haisla Nation has a 51.1% majority stake and Pembina holds the remaining 49.9% interest in Cedar LNG Partners and the proposed FLNG facility that would be deployed in Kitimat, British Columbia.
