Haisla Nation has partnered with Pembina Pipeline Corporation whereby Pembina will work alongside Haisla in the development of the proposed Cedar LNG Project. The project’s location is strategically selected to leverage Canada’s abundant natural gas supply and British Columbia’s growing LNG infrastructure. The project will be focusing on producing low carbon, low cost Canadian LNG for overseas markets.
Cedar LNG is a proposed LNG facility in Kitimat, British Columbia. It is located on Haisla Nation-owned land in the Douglas Channel which is one of the principal shipping routes on the British Columbia coast. The project is being said to have one of the cleanest environmental profiles in the world as the project will be connected to the existing BC hydro transmission system which will enable it to utilize renewable electricity to make Cedar LNG one of the lowest emissions intensity LNG facilities globally.
The project is said to have a liquefaction capacity of approximately three million tons per annum of LNG. The project will source natural gas from the prolific Montney resource play in northeast British Columbia. The project will target the Asia Pacific market and thus will maximize the project’s geographic shipping advantage compared to US Gulf Coast LNG projects which are subject to high cost and risks related to transiting the Panama Canal. With large energy needs and aggressive emission reduction targets in Asia Pacific, the project is positioned favorably. The project will provide a connection for Western Canadian Sedimentary Basin natural gas to international markets and will contribute to the displacement of coal as an energy source in Asia.
The estimated that gross cost of the Cedar LNG project is USD 2.4 billion. Cedar LNG will be leveraging Pembina's existing LNG off-taker relationships thereby securing offtake agreements with LNG buyers that are long-term, tolling-based. Returns are expected to be similar to other large-scale capital projects undertaken by Pembina.