Cedar LNG signs FLNG deal with Samsung Heavy, Black & Veatch

The Haisla Nation and Pembina Pipeline Corporation, partners in the Cedar LNG project, have selected Samsung Heavy Industries (SHI) and Black & Veatch to provide engineering, procurement, and construction for the project's floating LNG production unit (FLNG), it said on January 4.

“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 has already secured major regulatory approvals and signed memorandums of understanding for long-term liquefaction services, covering the project's total LNG capacity. With this milestone achievement, the project has advanced significantly in planning and development, and a final investment decision is anticipated by the end of the first quarter of 2024.

Subject to a positive FID, onshore construction work for the Cedar LNG project could commence as early as the second quarter of 2024, with the delivery of the FLNG and substantial completion expected in 2028.

In November last year, Pembina signed a heads of agreement with SHI and Black & Veatch to secure access to shipyard capacity. 

The 3mn tonnes/year Cedar LNG project is a partnership to develop an FLNG facility in Kitimat, British Columbia, Canada, within the traditional territory of the Haisla Nation. It is positioned to leverage Canada's abundant natural gas supply and BC's LNG infrastructure, Cedar LNG will be powered by renewable electricity from BC Hydro.