Cedar LNG Announces Positive Final Investment Decision

Tuesday, June 25, 2024 – KITAMAAT VILLAGE, British Columbia – The Haisla Nation and Pembina Pipeline Corporation (“Pembina”) (TSX: PPL; NYSE: PBA), partners in Cedar LNG Partners LP (“Cedar LNG”), today announced a positive Final Investment Decision (“FID”) on the Cedar LNG Project, a floating liquefied natural gas (“LNG”) (“FLNG”) facility with a nameplate capacity of 3.3 million tonnes per annum (“mtpa”), located in the traditional territory of the Haisla Nation, on Canada’s West Coast (the “Project”).

The Project is strategically positioned to leverage Canada’s abundant natural gas supply and deliver a lower-carbon energy option to global markets. The facility will be powered by renewable electricity from BC Hydro, making it one of the lowest emitting LNG facilities in the world.

“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,” said Crystal Smith, Chief Councillor of the Haisla Nation. “Because of our Nation’s determination and environmental leadership, Cedar LNG will make the most significant mark on economic reconciliation ever in our country. With Cedar LNG, we have proven that Indigenous communities can successfully forge a path to economic independence and generational prosperity. We have created a model for how sustainable energy development should be done, with Indigenous Nations as owners, balancing environmental interests with global demand for cleaner energy.”

Additional comments from Chief Councillor Smith, and other Haisla Nation members, are offered in a short video about this historic announcement, which can be accessed here.

“Together with our partner, the Haisla Nation, we are honoured to have made Cedar LNG a reality. This is a historic moment, and we are proud to be moving forward with a project that will deliver industry-leading, low-carbon, cost-competitive Canadian LNG to overseas markets and contribute to global energy security, while delivering jobs and economic prosperity to the local region,” said Scott Burrows, Pembina’s President and Chief Executive Officer. “Cedar LNG aligns perfectly with our strategy and where we want to be as a company moving forward. The Cedar LNG Project will enhance the resiliency of Pembina’s business, provide much needed new egress and greater access to global markets for our customers, and reflects the Haisla Nation and Pembina’s shared values and commitment to supporting a more sustainable future.”

“As a result of the Haisla Nation’s vision and determination, today we are demonstrating Canada’s ability to sustainably grow its LNG export sector to support the global clean energy transition,” said Doug Arnell, Chief Executive Officer of Cedar LNG. “Moreover, the Haisla Nation and Pembina, as true partners, are demonstrating a new model for how industry and Indigenous communities can work together for mutual benefit.”

The Right Honourable Justin Trudeau, Prime Minister of Canada offered his congratulations in a video statement, which can be accessed here.

The Honourable David Eby, Premier of British Columbia said, “This decision shows not only the perseverance of the Haisla Nation in achieving this historic milestone, but also confidence of investors in B.C.’s economy, and how the future for the natural resources sector is bright and will continue to support B.C.’s strong economic performance, which has led Canada’s large provinces in GDP growth since 2017.” Premier Eby added, “Cedar LNG is a shining example of how natural resource development should work in our province—in full partnership with First Nations and with the lowest emissions possible. By working together, we can build a stronger and cleaner economy that creates opportunities and benefits for all.” Premier Eby’s video statement can be accessed here.

Cedar LNG Financing Update

The Project is expected to be funded with asset-level debt financing for approximately 60 percent of the Project cost. Cedar LNG has secured a construction term loan with a syndicate of banks.

The remaining approximately 40 percent of the costs of the Project are expected to be financed through equity contributions from both partners. The Haisla Nation have obtained committed capital through the First Nations Finance Authority to fund their 20 percent equity contribution to the Project. Pembina continues to anticipate its equity contribution will be funded from cash flow from operating activities. Pembina expects no material change to its 2024 Cedar LNG equity contributions disclosed previously, with no incremental post-FID contributions in 2024 anticipated.

Prior to FID, Pembina was required to provide financial assurances to advance Project-related upstream infrastructure projects. Following the positive FID, the required financial assurances will be transferred to Cedar LNG. Cedar LNG has secured a letter of credit facility for the ongoing funding of the required financial assurances.

Cedar LNG received strong support from domestic and international capital providers reflecting the positive merits of the Project.

Comments from Cedar LNG Supporters

Cedar LNG’s positive FID builds on years of collaboration, including strong support from neighbouring Indigenous communities, the District of Kitimat, provincial, and federal governments, industry, and many others.

ARC Resources

“Congratulations to the Haisla Nation and Pembina Pipeline on achieving this significant milestone. We are proud to partner with Cedar LNG on a project that advances Indigenous economic reconciliation and delivers tremendous economic benefits to communities and Canadians more broadly,” said Terry Anderson, President and Chief Executive Officer, ARC Resources Ltd. “The demand for cost-competitive natural gas from key consuming nations around the world is evident. We look forward to delivering low-cost Canadian LNG to global markets with partners who share our commitment to responsible energy development and innovation.”

Black & Veatch

“With this fundamental financial milestone achieved, we’re eager to continue advancing this project by leveraging our industry-leading PRICO technology and topside expertise in floating liquefied natural gas infrastructure,” said Brady Hays, Senior Vice President for Black & Veatch’s fuels and natural resources sector. “We’re proud to be associated with this project, our partner Samsung Heavy Industries, and other stakeholders as all of us pursue and deploy technologies that help lower carbon footprints.”

TC Energy / Coastal GasLink

“I want to congratulate the Haisla Nation and Pembina Pipeline on achieving this tremendous milestone and recognize how they have redefined the future of energy development in North America. Through Indigenous-ownership, Cedar LNG will create opportunities that will support Indigenous and local communities in northern British Columbia and deliver benefits to the world by meeting global demand for more secure, affordable and sustainable energy,” said François Poirier, President and CEO, TC Energy.

LNG Canada

“This remarkable achievement is the result of years of hard work, careful planning, and innovative thinking from the Haisla Nation and its members, Pembina Pipeline, and adjacent and local communities. On behalf of LNG Canada, we offer Cedar LNG our heartfelt congratulations on the occasion of reaching its final investment decision and wish them every success as they prepare to deliver made-in-B.C. LNG to the world,” said Jason Klein, President and CEO, LNG Canada.

District of Kitimat

“We are incredibly happy to celebrate the news that Cedar LNG will be moving forward. This decision is historic for the Haisla Nation and significant for all residents in Kitamaat Village and the District of Kitimat who are seeing our community continue to grow as an energy hub for the world, said Mayor Phil Germuth. “Congratulations to the Haisla Nation and to Pembina Pipeline for reaching today’s milestone.”

Cedar LNG Backgrounder

Overview

  • Cedar LNG is majority-owned by the Haisla Nation, in partnership with Pembina Pipeline Corporation, with 50.1% and 49.9% ownership, respectively.
  • The Project is strategically positioned to leverage Canada’s abundant natural gas supply from the Western Canadian Sedimentary Basin to access global markets and is expected to achieve higher prices for Canadian producers and enhance global energy security.
  • Cedar LNG made several innovative design decisions to minimize the Project’s environmental footprint and ensure it is one of the lowest-emitting LNG facilities in the world. One of the most important decisions was to power the facility with renewable electricity from BC Hydro. In addition, the choice of site location allows the Project to leverage existing LNG infrastructure, including the Coastal GasLink pipeline, a deep-water port, roads, and other infrastructure.
  • Under a long-term transportation agreement with Coastal GasLink Pipeline Limited Partnership, the Cedar LNG facility will receive 400 million cubic feet per day of Canadian natural gas via the Coastal GasLink pipeline.
  • The Project’s West Coast location provides one of the shortest shipping routes to key Asian markets. The Douglas Channel, leading to and from the site, offers an established, reliable shipping route and deepwater marine inlet, with year-round ice-free conditions.
  • The Project has a total estimated cost of approximately US$4.0 billion (gross), including estimated capital costs of approximately US$3.4 billion (gross), of which US$2.3 billion (gross), or approximately 70 percent, is under a fixed-price, lump-sum agreement, and US$0.6 billion (gross) of interest during construction and transaction costs.
  • The FLNG facility is being designed and constructed by Samsung Heavy Industries and Black & Veatch, global industry leaders in marine construction and FLNG solutions. As the engineering, procurement and construction contractors, they bring extensive qualifications and deep experience to the Project.
  • Given the Project will be a floating LNG facility, manufactured in the controlled conditions of a shipyard, it is expected that the Project will have lower construction and execution risk.
  • The Project is anticipated to be in service in late 2028.

Commercial agreements

  • Cedar LNG has secured 20-year take-or-pay liquefaction tolling services agreements with ARC Resources Ltd. and Pembina for 1.5 mtpa each. Commercial discussions are continuing with multiple other prospective customers as Pembina intends to assign its contracted capacity to a third-party.

Significant benefits for Indigenous and local communities

  • Critical to Cedar LNG’s success to date has been the strong support of neighbouring Nations. Cedar LNG is committed to sharing value with Indigenous and local communities in the region through construction jobs and contracting, training opportunities, long-term employment, and other measures that will contribute to economic prosperity in the region. The Project is expected to create up to 500 jobs during peak construction and approximately 100 full-time jobs during operation.

About Cedar LNG
Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a
floating LNG facility in Kitimat, British Columbia, Canada, within the traditional territory of the
Haisla Nation. Strategically 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, making it one
of the lowest carbon intensity LNG facilities in the world. More information on Cedar LNG can be
found at www.cedarlng.com.

About Haisla Nation
The Haisla Nation is the band government of the Haisla people. Our mission is to build a powerful,
prosperous and proud community, healthy in mind, body and spirit. We believe in building a strong
and thriving community, with healthy and happy members and a sustained and prosperous environment.
We are about 1700 people, with the majority living in Kitamaat Village. We have lived off the land
and waters of our traditional territory for thousands of years, and it remains the focus of all we
do. We believe that careful and appropriate economic development will bring our people necessary
self-sufficiency. Sustainable and realistic economic opportunities are increasingly available and
promise benefits for our people – and for every British Columbian. We know that in order to attain
strength and independence our Nation must work together – with government, business, the community,
and internally – with a spirit of respect and partnership. For more information, visit www.haisla.ca.

About Pembina
Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America’s energy industry for 70 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, visit www.pembina.com.

Advisors

MUFG Bank, Ltd. acted as financial advisor to Cedar LNG and Latham & Watkins LLP acted as legal counsel to Cedar LNG on the project financing. Stikeman Elliott LLP acted as Canadian legal counsel to Cedar LNG on the project financing and Norton Rose Fulbright acted as legal counsel for the lenders.

CIBC acted as sole financial advisor to the Haisla Nation in connection with its financing with the First Nations Finance Authority. Miller Titerle & Company LLP acted as legal counsel to Haisla Nation.

For further information:

Footage from the announcement event in Kitamaat Village, including video content such as speeches and b-roll and high-resolution photography will be available to download at www.cedarlng.com/media/ and here.

Forward-Looking Information and Statements

This news release contains certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”), including forward-looking statements within the meaning of the “safe harbor” provisions of applicable securities legislation, that are based on Cedar LNG’s and its partners, current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as “continue”, “anticipate”, “will”, “expects”, “estimate”, “potential”, “planned”, “future”, “outlook”, “strategy”, “protect”, “plan”, “commit”, “maintain”, “focus”, “ongoing”, “believe” and similar expressions suggesting future events or future performance.

In particular, this news release contains forward-looking pertaining to, without limitation, the following: expectations relating to Cedar LNG and the development of the Project, including the anticipated timing, costs and outcomes in relation to the Project and expected economic and environmental benefits therefrom; the design of, and current and future activities and operations with respect to, the Project, including the anticipated capacity thereof and expected emissions therefrom; statements regarding the capital and development costs of the Project, including the estimated Project costs and the intentions of the Cedar LNG partners with respect to the financing and funding thereof; Pembina’s intention with respect to assigning its liquefaction tolling services agreement with Cedar LNG to a third party; and expectations about industry activities and development opportunities, including outlooks for future international and national economic conditions and industry developments.

The forward-looking statements are based on certain assumptions that the Cedar LNG partners have made in respect thereof as at the date of this news release regarding, among other things: prevailing commodity prices, margins and exchange rates; that Cedar LNG’s financial results will be consistent with management expectations; the availability and sources of capital; estimated operating and development costs; utilization rates and future demand for services; the ability to reach required commercial agreements; and the ability to obtain required regulatory approvals and to comply with the conditions thereof.

Although the Cedar LNG partners believe the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: the regulatory environment and decisions and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; reliance on key relationships, joint venture partners and agreements; labour and material shortages; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by contract counterparties; actions by governmental or regulatory authorities, including changes in tax laws and treatment, changes in royalty rates, changes in regulatory processes or increased environmental regulation; the ability of Cedar LNG to acquire or develop the necessary infrastructure in respect of the Project; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation rates, commodity prices, supply/demand trends and overall industry activity levels; constraints on, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, and public opinion; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in Pembina’s Annual Information Form and Management’s Discussion and Analysis, each dated February 22, 2024 for the year ended December 31, 2023, and from time to time in Pembina’s public disclosure documents available at www.sedarplus.ca www.sec.gov and through Pembina’s website at www.pembina.com .

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date of this news release. Neither the Haisla Nation nor Pembina undertakes any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Media Inquiries:
Media line 1-844-775-6397
media@pembina.com
media@cedarlng.com

Pembina Investor Relations:
(403) 231-3156
1-855-880-7404
investor-relations@pembina.com

Pembina joins the Haisla Nation in advancing Indigenous participation of Canadian energy development to pursue an LNG project that will extend global market access and drive economic growth.

CALGARY, AB, June 8, 2021 – The Haisla Nation and Pembina Pipeline Corporation (“Pembina”) (TSX: PPL; NYSE: PBA) are pleased to announce a partnership agreement whereby Pembina will become the Haisla Nation’s partner in the development of the proposed Cedar LNG Project (“Cedar LNG” or the “Project”). The Project is strategically positioned to leverage Canada’s abundant natural gas supply and British Columbia’s growing liquefied natural gas (“LNG”) infrastructure to produce industry-leading low‑carbon, low-cost Canadian LNG for overseas markets. Cedar LNG will be the largest First Nation-owned infrastructure project in Canada and will have one of the cleanest environmental profiles in the world.

 “It was important for us to find a partner with the same values of environmental protection and community centered development,” said Crystal Smith, Haisla Nation, Chief Councillor. “Pembina’s long history of safe, reliable operations, and engagement with local communities made them the distinct choice for Cedar LNG. With a strong partnership, Cedar LNG will bring tremendous economic opportunities and benefits ensuring the Haisla people have control of our own future.”

“This partnership is the result of meaningful collaboration with the Haisla Nation to deliver responsibly-developed, world-class energy,” said Stu Taylor, Pembina’s Senior Vice President, Marketing and New Ventures & Corporate Development Officer. “We believe that environmental stewardship, Indigenous prosperity and inclusion, and mutual economic benefit are the cornerstones of future energy infrastructure development in Canada, and we are honoured to have the opportunity to work with the Haisla Nation to produce Canadian LNG.”

Pembina’s President and Chief Executive Officer, Mick Dilger, added, “We have worked with the Haisla Nation on and off for over a decade with three different Haisla Nation leaders, maintaining a positive relationship throughout that time. I am simply delighted that this long-term relationship has led us to this tremendous opportunity to finally partner with the Haisla Nation.  At Pembina, our goal is to leave communities in a better situation than we find them, which is what we have recently done in Prince Rupert, and what we will do here. This Project will bring a second product to global markets, consistent with our stated strategy, with more to come.”

Cedar LNG Project Overview

Cedar LNG is a proposed floating LNG facility in Kitimat, British Columbia, Canada, within the traditional territory of the Haisla Nation. The Project is located on Haisla Nation-owned land in the Douglas Channel, one of the principal shipping routes on the British Columbia coast. The Project will create jobs, contracting and other economic opportunities for the Haisla people, the local community and Indigenous Nations, and the region. Up to 500 people will be working at the Cedar LNG site at the peak of construction and approximately 100 people will be working at the facility full-time once operational.

The Project will have one of the cleanest environmental profiles in the world. Cedar LNG’s floating design offers significantly less environmental impact on the Douglas Channel coastline and the facility will be interconnected to the existing BC Hydro transmission system, utilizing renewable electricity to make Cedar LNG one of the lowest emissions intensity LNG facilities globally.

The Project will have a liquefaction capacity of approximately 3 million tonnes per annum of LNG and will source natural gas from the prolific Montney resource play in northeast British Columbia. Cedar LNG has secured a long-term transportation agreement on the Coastal GasLink pipeline for 400 million cubic feet per day of firm capacity. Natural gas will be delivered to the Project site through an approximately eight-kilometre-long pipeline that connects to the Coastal GasLink pipeline.

Liquefaction of natural gas will occur on a floating LNG facility, which will be moored in the Douglas Channel.  One of the many advantages of Cedar LNG is that the floating facility will be modularized and constructed at an existing shipyard in Asia, which will lower the capital cost and construction risk of the liquefaction facility, reduce the Project’s footprint, and minimize the disruption to the local community during the construction period. The technical concept for Cedar LNG is based on a proven simplified design utilized in other floating liquefaction projects, enabling lump-sum turnkey contracting for the majority of the Project’s costs. As a result, Cedar LNG represents among the lowest cost LNG value chains for delivery into the Asian market.

Cedar LNG will largely target the Asia-Pacific market to maximize the Project’s geographic shipping advantage compared to U.S. Gulf Coast LNG projects, which are subject to the high costs and risks of transiting the Panama Canal. Cedar LNG’s low-cost value chain, combined with its low emissions intensity, positions the Project favorably to deliver to Asian countries with large energy needs and aggressive emissions reduction targets. The Project provides a connection for Western Canadian Sedimentary Basin natural gas to international markets and will contribute to the displacement of coal as an energy source in Asia.

The estimated gross project cost of Cedar LNG is US$2.4 billion, or approximately $3.0 billion in Canadian dollars based on an exchange rate of 1.25 Canadian dollars per U.S. dollar. Cedar LNG will leverage Pembina’s existing LNG off-taker relationships to secure long-term, tolling-based offtake arrangements with LNG buyers. Returns are expected to be similar to other large-scale capital projects undertaken by Pembina.

Cedar LNG has completed initial work that has allowed regulatory and engineering work streams to be well advanced for a project at this stage. The Project has secured its LNG export license from the Canada Energy Regulator, and is undergoing environmental assessments by the provincial and federal governments.

Cedar LNG expects to make a final investment decision (“FID”) in 2023. Subject to additional factors including regulatory and environmental approvals, the expected in-service date for the Project is planned for 2027.

More information on Cedar LNG can be found at www.cedarlng.com.

Partnership Agreement

Under the agreement, Pembina will acquire the equity interests in Cedar LNG currently owned by PTE Cedar LP and Delfin Midstream Inc., with a resulting approximate ownership of 50 percent each between the Haisla Nation and Pembina. Further, Pembina will assume operatorship of the Project going forward and has assembled accordingly a world-class floating LNG team.

Pembina expects to invest approximately US$90 million in Cedar LNG over the next 24 months, prior to a FID, which includes costs to acquire its interest in the partnership as well as pre-FID development costs.

About Haisla First Nation

The Xa’is’la or Haisla meaning “dwellers downriver” have occupied their traditional territories in Northwestern British Columbia for more than 9,000 years. The Cedar LNG Project is a key element of the Haisla Nation’s economic and social development strategy and will further advance reconciliation by allowing the Haisla Nation to—for the first time ever—directly own and participate in a major industrial development in its territory. As a project led by the Haisla Nation and its partners, the Cedar LNG Project represents a new era of Canadian LNG: one where Indigenous and industry partnership—and world-leading social and environmental accountability—combine with market demand to create long-term prosperity for the Haisla Nation, the region and Canada.

About Pembina

Pembina is a leading transportation and midstream service provider that has been serving North America’s energy industry for more than 65 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Pembina also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business; and is growing an export terminals business. Pembina’s integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina’s service offering even further along the hydrocarbon value chain. These new developments will contribute to ensuring that hydrocarbons produced in the Western Canadian Sedimentary Basin and the other basins where Pembina operates can reach the highest value markets throughout the world.

Purpose of Pembina:

To be the leader in delivering integrated infrastructure solutions connecting global markets:

  • Customers choose us first for reliable and value-added services;
  • Investors receive sustainable industry-leading total returns;
  • Employees say we are the ’employer of choice’ and value our safe, respectful, collaborative and fair work culture; and
  • Communities welcome us and recognize the net positive impact of our social and environmental commitment.

Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.

Pembina’s common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.

For further information, contact:

Haisla First Nation

Media Relations

corr@haisla.ca

Pembina

Investor Relations

investor-relations@pembina.com

Media Relations

media@pembina.com

Forward Looking Statements and Information

This document contains certain forward-looking statements and forward looking information (collectively, “forward-looking statements”), including forward-looking statements within the meaning of the “safe harbor” provisions of applicable securities legislation, that are based on Pembina’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as “will”, “strategy”, “create”, “proposed”, “planned”, “represent”, “expect”, “commit” and similar expressions suggesting future events or future performance.

In particular, this document contains forward-looking statements, pertaining to, without limitation, the following: CEDAR LNG, including its expected economic and community benefits,  the number of people excepted to be employed as part of CEDAR LNG, its environmental profile and benefits, interconnection points and pipeline access, liquefication capacity, sources of natural gas, targeted markets, expected in-service date, budget projections, the timing of investments decisions, and  expected capital expenditures and the timing thereof.

The forward-looking statements are based on certain assumptions that Pembina has made in respect thereof as at the date of this news release regarding, among other things: oil and gas industry exploration and development activity levels and the geographic region of such activity; prevailing commodity prices, interest rates, carbon prices, tax rates and exchange rates;  the availability of capital to fund future capital requirements relating to CEDAR LNG; geotechnical and integrity costs; that the Project will be sanctioned and completed as expected; that any required commercial agreements can be reached; that all required regulatory and environmental approvals can be obtained on the necessary terms in a timely manner; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant facilities; that there are no unforeseen material costs relating to the facilities which are not recoverable from customers; and  prevailing regulatory, tax and environmental laws and regulations.

Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties including, but not limited to: the regulatory environment and decisions and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; labour and material shortages; reliance on key relationships and agreements; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by counterparties to agreements which Pembina or one or more of its affiliates has or may enter into in respect of its business, including CEDAR LNG; actions by governmental or regulatory authorities, including changes in tax laws and treatment, climate change initiatives or policies or increased environmental regulation; adverse general economic and market conditions in Canada, North America and worldwide, including changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, commodity prices, supply/demand trends and overall industry activity levels; constraints on the, or the unavailability of, adequate infrastructure; the political environment in North American and elsewhere, and public opinion; ability to access various sources of debt and equity capital; changes in credit ratings; technology and cyber security risks; natural catastrophes; and certain other risks detailed from time to time in Pembina’s public disclosure documents available at www.sedar.com, www.sec.gov and through Pembina’s website at www.pembina.com.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. The forward-looking statements contained in this document speak only as of the date of this document. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. Readers are cautioned that management of Pembina approved the financial outlook contained herein as of the date of this press release. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

The Cedar LNG Project (Project) is a proposed floating liquefied natural gas (FLNG) facility in Kitimat, British Columbia, within the traditional territory of the Haisla Nation.

As part of the planning and development of the Project, Cedar LNG is hosting a series of virtual small group meetings to:

  • Meet the Cedar LNG Project team and ask questions about the Project.
  • Provide comments on what information the Project team should include in its application for an environmental assessment certificate.

The meetings are in addition to Indigenous and public consultation activities being hosted by the provincial and federal governments as part of the environmental assessment for the Project. All comments will become part of the public record, along with Cedar LNG’s responses.

The meetings will be held virtually in support of the provincial and federal government’s social distancing requirements to reduce the spread of COVID-19.

Canadian energy produced cleanly, responsibly, and efficiently.

The Cedar LNG Project is strategically positioned to leverage Canada’s abundant natural gas supply and BC’s growing liquefied natural gas (LNG) infrastructure to produce industry-leading low-carbon, low-cost Canadian LNG for new overseas markets.

Accessibility

Your participation matters to us. If you require additional accommodation for any reason, including limited access to the internet or you are unable to participate virtually, please contact us (events@cedarlng.com) and we will make our best effort to assist.

Majority-owned by the Haisla Nation, Cedar LNG Partners brings together Pacific Traverse Energy and Delfin Midstream to develop the Cedar LNG Project, an export facility in Kitimat, British Columbia. Strategically positioned to leverage Canada’s abundant natural gas supply and BC’s growing LNG infrastructure, Cedar LNG will produce industry-leading low-carbon, low-cost Canadian LNG for Asia-Pacific markets.

Visit www.cedarlng.com to learn more about this Haisla Nation-led LNG export project and sign up for our newsletter to receive project updates.

On October 30, 2020, Haisla Nation Council reached a milestone with a vote to approve the partnership agreement for the Cedar LNG project with Pacific Traverse Energy (PTE), a Vancouver-based energy infrastructure development company and Delfin Midstream, an LNG export development company specializing in low-cost floating LNG technology, with offices in Houston, TX and Oslo, Norway.

Council’s decision on the project advances this unprecedented opportunity both for the Nation and for the region.

“Council has been ensuring that Haisla members are given an opportunity for success, and that our community continues to grow and prosper,” says Chief Councillor Crystal Smith.

Smith points to the benefits from the LNG industry seen to date even with the LNG Canada project, which saw a final investment decision two years ago, and notes that the positive decision made the Cedar LNG Project feasible.

Cedar LNG will be a floating natural gas liquefaction facility and is aiming to be the first majority Indigenous-owned LNG export facility in Canada, with its majority stake owned by the Haisla Nation.

“A benefit from our LNG Canada project agreement means that the Haisla Nation can exercise an option for capacity on the Coastal GasLink pipeline, which feeds the LNG Canada project. Our Economic Development department have worked hard to secure that capacity to maximize benefits for the Haisla territory,” adds Smith.

Up to 50 LNG carriers a year will moor at the floating liquefaction facility and export LNG to Asian markets. Cedar LNG has already been granted a natural gas export licence by the National Energy Board (now Canadian Energy Regulator).

The Cedar LNG Project will be designed to be consistent with Haisla values, including minimizing effects to the environment. The liquefaction process will be electric-driven and use air cooling technology.

Construction is expected to require between 350 to 500 workers, with a further 70 to 100 jobs available once operational.

Zachary Steele, CEO of PTE, welcomes this opportunity to work with the Haisla Nation.

“We are honored and humbled to partner with Haisla Nation on this historic project.  We are excited, through our partnership, to progress the Cedar LNG Project which will create positive generational impacts for the Haisla Nation and the region as a whole,” says Steele.

LNG Canada CEO Peter Zebedee, meanwhile, speaks to the excitement of the decision and its benefits to B.C. at large.

“Today’s Agreement between PTE, Delfin and the Haisla is an exciting opportunity for the Haisla Nation and their partners. These partnerships position the province well to provide security of supply for global markets that need natural gas to fuel their economies, reduce global GHG emissions when natural gas replaces the use of coal, and will help usher in strong economic growth and stability to northern British Columbia communities and all of Canada,” says Zebedee.

The Cedar LNG Project has started the environmental assessment process and is subject to both a provincial environmental assessment and a federal impact assessment. An initial project description is filed with the BC Environmental Assessment Office, and can be viewed at https://www.projects.eao.gov.bc.ca.

Additional information about the Cedar LNG Project will be posted on the Project’s website, www.cedarlng.com, when it becomes available.

The federal Minister of Environment and Climate Change has agreed to the substitution of the provincial environmental assessment process for the federal process for a 17th project – the Cedar LNG Project. The use of one assessment for both levels of government will eliminate the duplication of having two assessments for a single project, while maintaining environmental protection and Indigenous consultation. The provincial environmental assessment will meet all federal and provincial requirements.

Substitution Decision is found here: https://iaac-aeic.gc.ca

Cedar LNG Export Development Ltd. has entered into the environmental assessment process with the proposed Cedar LNG Liquefaction and Export Terminal Project, a floating liquefied natural gas (LNG) facility and marine export terminal in Kitimat, B.C. with an export capacity of 3 to 4 million tonnes per year of LNG.

The Initial Project Description can be found here: https://projects.eao.gov.bc.ca

Information on the Project’s Provincial Environmental Assessment process can be found here: https://projects.eao.gov.bc.ca

Information on the Project’s Federal Environmental Assessment Process can be found here: https://iaac-aeic.gc.ca