Cedar LNG announces floating unit contract award
Officials anticipate making a final investment decision this quarter.
Key Takeaways:
- Samsung Heavy Industries (SHI) and Black & Veatch have been selected to provide engineering, procurement and construction for the design, fabrication and delivery of the project’s floating LNG production unit
- Project officials say a final investment decision is expected by the end of the first quarter of 2024.
- Onshore construction work for the project could commence as early as the second quarter 2024, with the delivery of the FLNG and substantial completion expected in 2028.
The Whole Story:
The Haisla Nation and Pembina Pipeline Corporation, partners in the development of the proposed Cedar LNG Project, announced Samsung Heavy Industries (SHI) and Black & Veatch have been selected to provide engineering, procurement and construction for the design, fabrication and delivery of the project’s floating LNG production unit (FLNG), subject to a Final Investment Decision (FID).
“This is a critical milestone on our path towards a FID for Cedar LNG, the first Indigenous majority-owned LNG project in the world,” said Doug Arnell, Cedar LNG CEO. “We have secured world-class FLNG expertise and look forward to working with SHI and Black & Veatch to build an LNG facility with one of the cleanest environmental profiles in the world that will usher in a new era of low carbon, sustainable LNG production.”
Cedar LNG now has major regulatory approvals and signed memorandums of understanding for long-term liquefaction services for the project’s total LNG capacity. Officials say the project is now at an advanced stage of planning and development with a FID expected by the end of the first quarter 2024. However, early last year, Cedar LNG stated that it was anticipating a FID in the third quarter of 2023.
Subject to a positive FID, onshore construction work for the project could commence as early as the second quarter 2024, with the delivery of the FLNG and substantial completion expected in 2028.
The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas facility in Kitimat, B.C. within the traditional territory of the Haisla Nation. Cedar LNG will be powered by renewable electricity from BC Hydro, making it one of the lowest carbon intensity LNG facilities in the world.
