Canada’s Pembina draws in to Haisla LNG project

Pembina Pipeline, whose Jordan Cove LNG project in Oregon is stalled in the face of public opposition and difficulties earning state permits, has reached an agreement to acquire a 50% equity interest in the Haisla-led Cedar LNG project in northern BC, it said June 8.

Cedar LNG, a 3mn mt/yr floating LNG facility on the Douglas Channel, in the heart of the Haisla’s traditional territory near Kitimat, will be the first indigenous-led liquefaction and export project in Canada.

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“It was important for us to find a partner with the same values of environmental protection and community-centred development," Haisla Nation chief councillor Crystal Smith said. “Pembina's long history of safe, reliable operations, and engagement with local communities made them the distinct choice for Cedar LNG.” 

The project is in the midst of a joint federal/provincial environmental review, but has secured a 25-year LNG export licence from the Canada Energy Regulator and 400mn ft³/day of firm transportation capacity on the Coastal GasLink pipeline now under construction to serve the nearby LNG Canada project. A final investment decision (FID) on the C$3bn (US$2.5bn) project is expected in 2023, ahead of a planned in-service date in 2027.

Pembina will acquire its interest in Cedar LNG from Pacific Traverse Energy and Delfin Midstream, which entered into partnership agreements with the Haisla Nation late last year. It expects to invest about C$109mn in Cedar LNG over the next 24 months, including costs to acquire its equity interest and pre-FID development costs.

Pembina will assume operatorship of the project, and has already secured a “world-class” floating LNG team, it said.

“This partnership is the result of meaningful collaboration with the Haisla Nation to deliver responsibly-developed, world-class energy,” said Stu Taylor, Pembina's senior vice president, marketing and new ventures. “We believe that environmental stewardship, indigenous prosperity and inclusion, and mutual economic benefit are the cornerstones of future energy infrastructure development in Canada, and we are honoured to have the opportunity to work with the Haisla Nation to produce Canadian LNG.”

The project’s modules will be built at fabrication yards in Asia to reduce capital costs and construction risks, reduce the project’s footprint and minimise disruption to the local community during the construction period. Up to 500 people will work on the project site during construction, with another 100 filling full-time operating jobs.

Cedar LNG says its project will have one of the cleanest environmental profiles in the world, and its location, immediately across the Douglas Channel from Kitamaat Village, traditional home of the Haisla Nation, offers significantly less environmental impact on the channel and its surroundings. It will be connected to the BC Hydro power grid and utilise renewable electricity, making it one of the lowest emissions-intensive LNG facilities in the world.