The next North American LNG project to reach a final investment decision (FID) will likely be in Western Canada. Pembina plans to take FID on the proposed Cedar LNG, a 3.3 MMtpa (0.44 Bcf/d) floating LNG terminal (FLNG) in Kitimat, British Columbia, located within the territory of the Haisla Nation. The project is being jointly developed by Pembina and the Haisla Nation, whose support has helped propel the project towards the construction phase. Early construction work on the project began in April, when Pembina issued a limited notice to proceed (LNTP) to its engineering, procurement, and construction (EPC) contractors. The notice came just a few days after announcing that it had signed a 20-year, 1.5 MMtpa tolling agreement with ARC Resources. Pembina has also executed a sales and purchase agreement (SPA) for 1.5 MMtpa with the terminal, making the capacity functionally sold-out. The company is working on final financing arrangements and has said it was on track for an FID in June. At this point, the project seems likely to move forward and is expected to come online in 2028. Pembina has said it plans to market the 1.5 MMtpa of LNG after the project reaches FID.
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- Analyst Insight
Canada’s Cedar LNG Export Project Several Steps Closer to FID
Cedar LNG, an LNG export project proposed for the coastline of British Columbia has made important strides toward making a final investment decision to proceed by mid-2024.
- Blog
Keep This Party Going - An Update on Canada's West Coast LNG Export Projects
Developers have been kicking around plans for LNG exports from British Columbia (BC), Canada’s westernmost province, for more than a decade, with more than 20 projects on the drawing board at one point. That long list has been whittled down to just three that have reached the point of final investment decision (FID) — a hard plan to proceed to construction and startup. One of those projects, LNG Canada, should be sending out LNG as soon as the end of this year, placing Canada firmly on the map of LNG-exporting nations. In today’s RBN blog, we take a closer look at the three projects and hint at plans by a handful of contenders vying to join the LNG export party.
- Analyst Insight
Canada’s Cedar LNG: ARC Resources Announces LNG Sales Agreement with ExxonMobil
ARC Resources, as part of its commitment to the Cedar LNG project, announced on March 11, that it had entered a long-term sales and purchase agreement with an affiliate of ExxonMobil, for the sale of LNG that will come into effect on the start up of Cedar LNG's commercial operations in late 2028.
