Pembina sees delay for Cedar LNG FID

Pembina Pipeline, which has a 50% interest with BC's Haisla Nation in the Cedar LNG project in Kitimat, BC, said February 22 it expects a final investment decision (FID) on the project “in the middle of 2024.”

In December 2023, Pembina said FID on Cedar LNG, which will produce about 3.1mn tonnes/year of LNG from a floating facility, was expected “by the end of the first quarter 2024.”

In its Q4 2023 earnings release, Pembina said Cedar LNG had completed several key project deliverables, including a lump sum engineering, procurement and construction agreement with a joint venture of Samsung Heavy Industries and Black & Veatch. By year-end 2023, Pembina said, it had invested about C$200mn into the project.

“Though numerous milestones have been achieved, the Cedar LNG project still faces a number of schedule driven interconnected elements that require resolution prior to making a final investment decision (FID), including binding commercial offtake, obtaining certain third-party consents, and project financing,” Pembina said. “On this basis, a final investment decision is now expected in the middle of 2024.”

As a result of the delayed FID, current year net contributions to Cedar LNG are expected to be in the range of C$200mn-C$300mn through to the middle of the year, Pembina said.

Fourth quarter earnings were C$698mn, up from C$243mn in Q4 2022, while adjusted EBITDA reached a record C$1.03bn, up from C$925mn in the comparable 2022 period.

Full year earnings in 2023 declined to C$1.78bn from C$2.97bn in 2022, but adjusted EBITDA was a record C$3.82bn, up from C$3.75bn in 2022.