Cedar LNG Project in Kitimat gets provincial environmental approval

Haisla Nation and Pembina Pipeline have been granted provincial environmental approval for their jointly developed Cedar LNG Project in Kitimat, British Columbia (BC).

The BC Environmental Assessment Office issued the environmental assessment certificate (EAC) for the floating liquefied natural gas (FLNG) project following a joint decision by ministers in the British Columbia government.

The Cedar LNG Project is planned to be developed on land owned by the Haisla Nation. It is aimed to export three million tonnes annually (MTPA) of LNG.

The final decision on investment (FID) on the Cedar floating LNG project is expected to be announced in the third quarter of 2023.

Haisla Nation is the majority owner of the Cedar LNG terminal in Kitimat.

The BC Environmental Assessment Office said that the ministers have acknowledged that the FLNG project has taken all measures that are currently available to limit greenhouse gas emissions to the smallest achievable amount.

In the context of having to implement the greenhouse gas emissions reduction plan, paired with the regulations currently in development by the government concerning emissions from the oil and gas industry, the ministers decided that the proposed project could fit within the climate goals and targets of British Columbia.

Cedar LNG Project in Kitimat gets provincial environmental approval. Photo courtesy of Cedar LNG.

Crystal Smith — Haisla Nation Chief Councillor said: “The receipt of our EAC is the culmination of more than a decade of work by the Haisla Nation and marks a significant milestone for the Cedar LNG project and the Haisla Nation’s journey towards economic self-determination.

“With Cedar LNG, we are setting a new standard of responsible and sustainable energy development. Together with our partner, Pembina, we are committed to advancing an LNG project that protects the environment, respects Haisla Nation values, and meets the highest standards of social and environmental responsibility.”

Cedar LNG Partners, the holding company for the FLNG project is required to obtain further permits and approvals from the federal and provincial governments and authorizations prior to beginning construction.

The FLNG project also received its first permit from the British Columbia energy regulator to construct the 8.5km pipeline that will connect Cedar LNG to the Coastal GasLink Pipeline.

Haisla Nation and Pembina Pipeline have also announced that they have signed a 20-year agreement on liquefaction service agreements with ARC Resources for the Cedar LNG Project.

A final agreement is being drawn by the parties for 1.5MTPA of LNG. That’s equivalent to around 200 million cubic feet of standard cubic feet of natural gas.

Scott Burrows — Pembina Pipeline President and CEO said: “Cedar LNG will benefit Pembina and its customers, the Haisla Nation, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy.

“Pembina is proud of its long history of safe and reliable operations, and we look forward to contributing our expertise as we work together to bring Canadian LNG to the world.”