Black & Veatch Granted Green Light for Canada’s Pioneering FLNG Endeavor

Black & Veatch, a global leader in liquefied natural gas (LNG) infrastructure solutions, alongside high-tech shipbuilder Samsung Heavy Industries (SHI), has received full notice to proceed from Cedar LNG LP partners for the construction of Cedar LNG’s floating liquefaction facility in Kitimat, British Columbia. Black & Veatch's responsibilities encompass complete topside design and equipment supply, incorporating its PRICO® technology, while SHI will undertake the hull provision along with the containment system, and fabrication and integration of all topside modules.

S.I. Oh, Executive Vice President and Chief Marketing Officer of Samsung Heavy Industries, expressed, “Cedar FLNG has achieved another milestone of notice to proceed, solidifying an excellent partnership between SHI and Black & Veatch.” He further emphasized the prowess of both entities in the FLNG market.

Cedar LNG is strategically positioned to capitalize on Canada’s abundant natural gas reserves and British Columbia’s expanding LNG infrastructure to deliver industry-leading, low-carbon, and competitively priced LNG to global markets. The near-shore export facility will boast electric-driven equipment powered by renewable energy, positioning it as one of the world’s lowest-carbon-intensity LNG facilities.

Laszlo von Lazar, President of Black & Veatch’s Energy and Process Industries business, affirmed the company's commitment to aiding clients and their communities in advancing their decarbonization efforts. He articulated, "The Cedar LNG endeavor marks significant initial strides in diminishing carbon emissions by establishing lower-carbon LNG facilities, catering to clients seeking alternatives to higher carbon-intensive feedstocks.”

This project marks several significant milestones: it will be the world’s first indigenous majority-owned LNG project, the first electric-driven FLNG powered by renewable energy, the first air-cooled FLNG facility, and Canada’s inaugural FLNG export facility. Cedar LNG will also boast one of the world’s lowest carbon intensity LNG facilities due to its reliance on renewable electricity to power electric-driven refrigeration compressors, boil-off gas compressors, and six centrifugal pumps.

Furthermore, the Cedar LNG project serves as a platform for collaboration between the Haisla Nation and Pembina to develop the Haisla Nation-led initiative, while also strengthening the partnership between SHI and Black & Veatch. This project holds significant economic and social implications, forming a cornerstone of the Haisla Nation’s economic development strategy. Moreover, it represents a stride forward in indigenous economic reconciliation by affording the Haisla Nation direct ownership and participation in a major industrial development within their territory.

Black & Veatch stands as a globally renowned engineering, procurement, consulting, and construction enterprise entirely owned by its employees. With a legacy spanning over a century, the company has been at the forefront of pioneering sustainable infrastructure solutions through innovative approaches.

The Cedar LNG initiative represents a collaboration between the Haisla Nation and Pembina to establish a floating liquefied natural gas facility in Kitimat, British Columbia, Canada, situated within the ancestral lands of the Haisla Nation. Positioned strategically to capitalize on Canada's ample natural gas resources and British Columbia's LNG infrastructure, Cedar LNG will operate on renewable electricity sourced from BC Hydro, positioning it among the world's most environmentally friendly LNG facilities in terms of carbon intensity.