The Haisla Nation and Pembina Pipeline Corporation (Pembina) (TSX: PPL; NYSE: PBA), partners in Cedar LNG Partners LP (“Cedar LNG”), have reached a pivotal moment with their positive Final Investment Decision (FID) regarding the Cedar LNG Project. This floating liquefied natural gas (FLNG) facility, boasting a nameplate capacity of 3.3 million tonnes per annum (mtpa), is set to be developed in the traditional territory of the Haisla Nation on Canada’s West Coast.

The announcement marks a significant milestone as it positions Cedar LNG as one of the world’s lowest emitting LNG facilities, thanks to its operation on renewable electricity sourced from BC Hydro. This strategic decision not only supports a lower-carbon energy future but also aligns with global market demands for more sustainable energy solutions.

Crystal Smith, Chief Councillor of the Haisla Nation, highlighted the project’s importance, stating, “Today, the Haisla Nation, with our partner Pembina, have made history as the world’s first Indigenous community to develop an LNG facility as majority owners.” This venture is not just a business achievement; it is a significant step towards economic reconciliation and independence for Indigenous communities, providing a model for sustainable energy development with environmental stewardship at its core.

Pembina’s President and CEO, Scott Burrows, echoed this sentiment, emphasizing that Cedar LNG aligns with Pembina’s strategic goals and commitment to a sustainable future. He remarked on the project’s capacity to enhance global energy security while generating local jobs and economic prosperity.

The Cedar LNG Project is anticipated to play a crucial role in Canada’s ability to grow its LNG export sector sustainably. Doug Arnell, CEO of Cedar LNG, mentioned the project demonstrates a new model for cooperation between industry and Indigenous communities, ensuring mutual benefits.

Valued at approximately US$4.0 billion, the FLNG project expects to leverage existing infrastructure and strategic geographic advantages to deliver Canadian LNG efficiently to global markets, particularly Asia.

The project financing details reveal that approximately 60% of the project cost will be covered through asset-level debt financing, while the remaining 40% will come from equity contributions by the partners. Notably, the Haisla Nation is financing their share through committed capital from the First Nations Finance Authority, underscoring the significant Indigenous investment and ownership.

The Cedar LNG Project has garnered substantial support from various stakeholders, including neighbouring Indigenous communities, local governments, and international investors, reflecting its broad economic and social benefits.

Cedar LNG is scheduled to commence operations in late 2028, promising significant economic benefits for the local and Indigenous communities through job creation and sustainable energy development. This project sets a precedent for future energy projects involving Indigenous ownership and leadership.

The Cedar LNG Project is a beacon of how traditional territories and modern energy needs can converge in a respectful, profitable, and sustainable manner. It exemplifies the potential for Indigenous-led projects to lead the way in global energy solutions.

  Cedar LNG, FLNG, Haisla Nation, Indigenous leadership in energy, LNG development, Pembina Pipeline, Sustainable Energy