Cedar LNG inks Engineering, Procurement and Construction contract

Chamber of Shipping > Blog > News > Local > Cedar LNG inks Engineering, Procurement and Construction contract

The Cedar LNG project, a collaboration between the Haisla First Nation and Pembina Pipeline Corp., has reached significant milestones including long-term natural gas supply agreements and a notice to proceed with EPC contracts. The project, located in Kitimat and set to be the world’s lowest carbon and first Indigenous majority-owned LNG facility, is estimated to cost US$3.4 billion and aims to start operations in 2028. ARC Resources Ltd. will supply 200 million cubic feet per day of natural gas for 20 years, contingent on a final investment decision (FID). Pembina, anticipating assigning its capacity to a third party post-FID, projects annual EBITDA earnings of US$200 million to US$260 million from Cedar LNG. The facility, designed as a floating LNG terminal by Samsung Heavy Industries and Black & Veatch in South Korea, will commence pre-FID early works in May 2024. A final investment decision is expected by mid-year, with commercial operations slated for late 2028.

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