Final investment decision delay for $2.4 billion Canadian LNG project

The remaining financial investment decision has been pushed back for the US$2.4 billion greenfield Cedar floating liquefied natural gasoline venture in Canada, after the associates elected to progress a next front-finish engineering and structure research.

The pairing of South Korea’s Samsung Weighty Industries and US contractor Black & Veatch early previous year won the FEED deal for the 3 million tonnes for each annum Haisla Country-led Cedar FLNG project, which is concentrating on start-up in 2027.

Even so, Cedar LNG has just discovered that late very last year it chose to development a second FEED research for the floating liquefaction vessel and “has been waiting around for that function to progress to the similar stage as the authentic FEED”.

“In conjunction with thorough industrial discussions and ongoing negotiations involving LNG Canada and Coastal GasLink, this has resulted in the expected final expenditure decision remaining revised to the fourth quarter of 2023,” the corporation verified.

Cedar LNG most not long ago had been aiming for undertaking sanction just before the stop of September.

Upstream has approached Cedar LNG for facts on who is carrying out the next FEED examine for the FLNG vessel.

The Haisla Nation has formed a partnership with Canada’s Pembina Pipeline Company to create the proposed Cedar LNG task, that Pembina claimed is strategically positioned to leverage Canada’s abundant normal gasoline offer and British Columbia’s growing LNG infrastructure to make business-foremost reduced-carbon, expense-aggressive Canadian LNG for overseas markets.

“Cedar LNG will deliver a beneficial outlet for WCSB [Western Canadian Sedimentary Basin] natural fuel to entry worldwide markets, and it is anticipated to achieve larger rates for Canadian producers, contribute to decrease all round emissions, and enrich international electrical power safety,” Pembina said.

“Given that Cedar LNG will be a floating facility, made in the managed problems of a shipyard, it is predicted that the undertaking will have decreased development and execution chance.”

The Cedar LNG venture will be driven by hydropower from British Columbia, which is envisioned to make it a person of the greenest liquefaction amenities globally.

Cedar LNG gained its LNG Facility Allow from the BC strength regulator in July 2023, which adopted receipt of its Environmental Assessment Certificate from the province’s Environmental Assessment Business office and a pipeline allow for the Cedar LNG Pipeline link to the Coastal GasLink Pipeline.

Haisla Nation has a 51.1% greater part stake and Pembina retains the remaining 49.9% desire in Cedar LNG Partners and the proposed FLNG facility that would be deployed in Kitimat, British Columbia.