On April 4, Pembina Pipeline Corporation (Pembina) and the Haisla Nation (Haisla), co-proponents of the Cedar LNG export project on Canada’s West Coast, announced the achievement of several important milestones that appear to have the project well placed for a positive final investment decision (FID) by mid-2024. These milestones included:
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ARC Resources, a major natural gas producer in Western Canada, signed a fixed toll 20-year take-or-pay liquefaction agreement for 1.5 million tonnes of LNG per annum (MMtpa) — meaning that ARC will be an offtaker of LNG from Cedar — while Pembina has executed an identical agreement to take an additional 1.5 MMtpa through the Cedar LNG corporate structure, which will eventually be assigned to a third party should a FID be achieved.
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ARC has also agreed to supply 200 MMcf/d of natural gas to the project.
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Pembina issued a notice to proceed to the LNG contractors, Samsung Heavy Industries and Black and Veatch.
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A more detailed capital cost estimate of $4 billion (~C$5.5 billion) has been developed, up from the original $2.4 billion (~C$3.3 billion) estimate.
Based on these new developments, Pembina and Haisla indicated that a positive FID could be reached by mid-2024, with an in-service date of late 2028.
