"We expect a positive final investment decision for the Cedar LNG project will occur assuming there is no deterioration in the project finance market," RBC analyst
"Pembina has made progress on a number of key items."
Cedar LNG is a proposed floating liquefied natural gas facility that pipeline company Pembina is planning to build with the Haisla in
The facility, which would produce LNG for export to Asian markets, would be owned by the Haisla, making it the largest Indigenous-owned infrastructure project in the country.
Pembina announced Thursday that it has signed a long-term natural gas supply agreement for the facility with
Under the terms of the agreement, ARC will deliver approximately 200 million cubic feet per day of natural gas for liquefaction to the facility, for a term of 20 years commencing with the start of commercial operations, which are anticipated in the second half of 2028.
Pembina also said Thursday it has issued a formal "notice to proceed" to its contractors for the engineering, procurement and construction of the LNG production unit.
Cedar LNG has already obtained all major regulatory approvals and is advancing an agreement that would connect the floating facility to Coastal GasLink, the
Construction of LNG Canada near
Another smaller LNG facility, Woodfibre LNG, has also received regulatory approval for construction near
Pembina said Thursday it expects to make its final investment decision on Cedar LNG by the middle of this year.
The company had previously said a decision could be made before the end of the first quarter, with onshore construction work starting as soon as the second quarter of this year. But it later deferred its decision, saying ongoing negotiations for natural gas supply, as well as the obtaining of certain third-party agreements and project financing, must first be resolved.
Proponents of a Canadian LNG industry say liquefied natural gas from
But environmentalists argue that LNG creates its own emissions through the liquefaction and transportation process, as well as through the drilling and flaring of natural gas in
They argue that building massive LNG terminals that require huge upfront capital investments "locks in" future greenhouse gas emissions at a time when the world needs to be planning for a lower-carbon future.
The capital cost of Cedar LNG was originally estimated at
This report by The Canadian Press was first published
Companies in this story: (TSX:PPL; TSX:ARX)
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