Cedar LNG provides project update; invites you to an open house
On June 25, 2024, the Haisla Nation made history alongside their partner Pembina Pipeline Corporation, when a positive final investment decision (FID) was declared for the world’s first Indigenous majority-owned LNG facility.
With a positive FID, construction commenced in early July 2024. This year, construction focused on the marine terminal area, as well as the commencement of clearing activities along the pipeline route, to prepare for a full construction season in 2025 (see photo – site progress as of November 2024). In addition to site clearing and preparation work, important environmental management measures have been implemented onsite, including sediment and erosion control measures.
The Cedar LNG Project will be hosting an Open House on December 10 in Kitimat to share updated project information – project schedule, regulatory update, employment & training, and more – with the community. Details are available here.
With peak construction anticipated in 2026, we are committed to keeping the community informed about construction activities and timing, and related opportunities. You can sign up to receive updates, and follow us on Facebook for the most current information about project activities.
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.govand 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.
Cedar LNG, a partnership between the Haisla Nation and Pembina Pipeline Corporation (Pembina), is continuing to progress towards a final investment decision by the middle of 2024. As shared on April 4, 2024, ARC Resources Ltd. and Pembina have both executed identical agreements with Cedar LNG for 1.5 mtpa of capacity. Commercial discussions are continuing with multiple other customers as Pembina intends to assign its capacity to a third-party following a positive FID. There are no equity structure changes currently contemplated for Cedar LNG, and any potential future changes would require approval by both partners.
About Cedar LNG The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas 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.
April 4, 2024 – Cedar LNG today announced that it has issued a Notice to Proceed (NTP) to the engineering, procurement, and construction (EPC) contractors following the finalization of long-term commercial offtake agreements. These critical milestones allow the project to proceed to secure financing, which is required prior to making a final investment decision (FID), expected by the middle of 2024.
“Today’s achievements mark an exciting time for our Nation as we seek to make Cedar LNG – the world’s lowest carbon and first Indigenous majority-owned LNG Facility – a reality in the coming months,” said Crystal Smith, Chief Councillor for Haisla Nation. “I am incredibly grateful to our Nation, all levels of government, Pembina and all our partners who have supported our journey to advance a project that protects our environmental and cultural values, while delivering prosperity for decades to come.”
“We are on-track to deliver an Indigenous majority owned, best-in-class LNG facility – one that will benefit the Haisla Nation, Pembina and its customers, the region, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy,” said Scott Burrows, Pembina’s President and Chief Executive Officer.
The issuance of today’s NTP directs our EPC Contractor, Samsung Heavy Industries and Black & Veatch, to finalize engineering and design for, and commence construction of, Cedar LNG’s state-of-the-art floating LNG facility (FLNG). Subject to a FID, once complete, the FLNG unit will be transported from Korea to the Cedar LNG site in Haisla traditional territory in the Douglas Channel, signaling a step change for the LNG industry and Indigenous people everywhere.
With major development milestones achieved, Cedar LNG is preparing for construction, with pre-FID early works commencing in May 2024, including tree clearing and rough grading activities at our proposed marine terminal near Kitimat.
The Project is continuing to progress towards a FID by the middle of 2024, with an anticipated in-service date in late 2028. Further details are provided below.
Commercial Offtake Secured
A 20-year take-or-pay fixed toll contract has been signed with ARC Resources Ltd. (“ARC”) for 1.5 million tonnes per annum (“mtpa”). As part of the agreement, ARC will supply Cedar LNG with approximately 200 million cubic feet per day of sustainable, Canadian natural gas for liquefaction at the environmental leading Cedar LNG facility. Having ARC participate in Cedar LNG is a testament to the value proposition this Project has on a global scale.
Pembina has executed an identical bridging agreement with Cedar LNG for 1.5 mpta of capacity. Commercial offtake discussions are continuing with multiple other customers as Pembina intends to assign its capacity to a third-party following a positive FID.
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, please visit www.pembina.com.
Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive. 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.
About ARC Resources ARC Resources Ltd. is a pure-play Montney producer and one of Canada’s largest dividend-paying energy companies, featuring low-cost operations and leading ESG performance. ARC’s investment-grade credit profile is supported by commodity and geographic diversity and robust risk management practices around all aspects of the business. ARC’s common shares trade on the Toronto Stock Exchange under the symbol ARX. For more information, please visit www.arcresources.com.
March 13, 2024 – Cedar LNG is proposing to build and operate an LNG facility in the traditional territory of the Haisla Nation.
With major development milestones achieved, including receipt of all major regulatory approvals, Cedar LNG is preparing for construction, which could commence as early as May 2024, starting with tree clearing and rough grading activities at our proposed marine terminal near Kitimat.
In anticipation of activities related to project development, we want to ensure you have access to information about the project, and can reach out with questions or feedback.
The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas 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 more than 65 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.
February 23, 2024 – Cedar LNG and its partners, the Haisla Nation and Pembina Pipeline, recently provided an update on project development milestones and timelines.
Cedar LNG has substantially completed several key project deliverables, including obtaining material regulatory approvals, advancing inter-project agreements with Coastal GasLink and LNG Canada, signing a heads of agreement with Samsung Heavy Industries and Black & Veatch, and executing a lump sum engineering, procurement, and construction agreement.
Though numerous milestones have been achieved, a number of schedule-driven, interconnected elements require resolution prior to making a final investment decision, including binding commercial offtake, obtaining certain third party consents, and project financing. A final investment decision is now expected in the middle of 2024.
About Cedar LNG
The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas 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 more than 65 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.
KITIMAT, BRITISH COLUMBIA, Canada January 4 2024 – The Haisla Nation and Pembina Pipeline Corporation (Pembina) (TSX: PPL; NYSE: PBA), partners in the development of the proposed Cedar LNG Project (Cedar LNG), today announced Samsung Heavy Industries (SHI) and Black & Veatch have been selected to provide engineering, procurement and construction for the design, fabrication and delivery of the Project’s floating LNG production unit (FLNG), subject to a Final Investment Decision (FID).
“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 Chief Executive Officer. “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.”
“Our role in helping Cedar LNG make history on this world-class facility aligns with our commitment to deliver a reliable and resilient global energy supply as a leader in the world’s energy transition,” said Mario Azar, Black & Veatch Chairman & Chief Executive Officer.
Cedar LNG now has major regulatory approvals, signed memorandums of understanding for long-term liquefaction services for the project’s total LNG capacity, and with the achievement of this milestone, the Project is at an advanced stage of planning and development with a FID expected by the end of the first quarter 2024.
Subject to a positive FID, onshore construction work for the project could commence as early as the second quarter 2024, with the delivery of the FLNG and substantial completion expected in 2028.
About Cedar LNG
The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas 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 more than 65 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.
Forward-Looking Statements
Certain information contained in this press release may be “forward-looking” in nature and is based on the Cedar LNG project partner’s current expectations, estimates, judgments and projections. All statements, other than statements of historical fact, which address activities, events or developments that the Cedar LNG project partners expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as “may”, “will”, “estimate”, “anticipate”, “believe”, “expect”, “plan”, “intend”, “target”, “project”, “forecast” or similar words suggesting future outcomes or outlook. The Cedar LNG project partners make no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking information contained herein is made as of the date hereof, unless otherwise noted, and the Cedar LNG project partners do not undertake any obligation to update or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
KITIMAT, BRITISH COLUMBIA, November 14, 2023 – The Haisla Nation and Pembina Pipeline Corporation (“Pembina”) (TSX: PPL; NYSE: PBA), partners in the development of the proposed Cedar LNG Project (“Cedar LNG” or the “Project”), are pleased to announce the signing of a heads of agreement (“HOA”) with Samsung Heavy Industries (“SHI”) and Black & Veatch.
The HOA provides Cedar LNG, on an exclusive basis with SHI and Black & Veatch, secure access to shipyard capacity to meet Cedar LNG’s target commercial operations date. The parties expect to finalize a lump sum engineering, procurement, and construction agreement in December of this year.
“This exclusive relationship with SHI and Black & Veatch to lock in shipyard capacity for the construction of the Cedar LNG FLNG vessel is a major step forward for our project,” said Doug Arnell, Cedar LNG Chief Executive Officer. “Through this agreement we are accessing world class expertise in the construction and delivery of floating LNG production vessels, which, together with renewable power from the BC Hydro grid, will result in an environmentally leading, state-of-the-art facility for Cedar LNG, with one of the lowest carbon footprints in the world.”
This agreement builds further momentum for the Project and follows receipt of all major regulatory approvals and the signing of memorandums of understanding for long-term liquefaction services with investment grade counterparties for the Project’s total LNG capacity.
Target Final Investment Decision (FID) continues to be by the end of 2023, however, given the complexity and sequencing of aligning the multiple work streams, which are required to facilitate Project financing, FID may move into early 2024.
About Cedar LNG The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas 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 more than 65 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.
Forward-Looking Statements
Certain information contained in this press release may be “forward-looking” in nature and is based on the Cedar LNG project partner’s current expectations, estimates, judgments and projections. All statements, other than statements of historical fact, which address activities, events or developments that the Cedar LNG project partners expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as “may”, “will”, “estimate”, “anticipate”, “believe”, “expect”, “plan”, “intend”, “target”, “project”, “forecast” or similar words suggesting future outcomes or outlook. The Cedar LNG project partners make no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking information contained herein is made as of the date hereof, unless otherwise noted, and the Cedar LNG project partners do not undertake any obligation to update or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
August 3, 2023 – Cedar LNG elected to progress a second Front End Engineering Design (FEED) process for the floating LNG vessel in late 2022 and has been waiting for that work to progress to the same stage as the original FEED. In conjunction with detailed commercial discussions and ongoing negotiations between LNG Canada and Coastal GasLink, this has resulted in the anticipated final investment decision being revised to the fourth quarter of 2023.
Regulatory and Commercial Update: On July 6, 2023, Cedar LNG received its LNG Facility Permit from the BC Energy Regulator. This is another major regulatory milestone that follows the receipt of the Environmental Assessment Certificate from the B.C. Environmental Assessment Office, a positive Decision Statement from the federal Minister of Environment and Climate Change, and a pipeline permit for the Cedar LNG Pipeline connection to the Coastal GasLink Pipeline. Collectively, these reflect the key permitting milestones for Cedar LNG.
In addition to the previously disclosed Memorandum of Understanding (MOU) with ARC Resources Limited, Cedar LNG has signed incremental non-binding MOUs with investment grade counterparties for long-term liquefaction services and is fully subscribed in relation to the project’s total capacity. Work towards the signing of definitive commercial agreements is ongoing.
About Cedar LNG The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas 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.
It has been a busy start to the summer for the Cedar LNG team as we continue to progress the world’s first Indigenous majority-owned LNG facility.
With environmental approvals received in March 2023, our FEED contractors in place, and strategic partnerships with ARC Resources and other offtake suppliers, Cedar LNG is well positioned to meaningfully contribute to the clean energy transition.
Our team attended the LNG2023 Global Conference in Vancouver, where we witnessed first-hand the excitement from across the LNG industry for projects like Cedar LNG. We met with many leaders in the LNG industry and hosted a reception, alongside Haisla Nation’s partners Seaspan and LNG Canada, where the world’s first electric tugboat was unveiled.
Haisla Nation and Pembina Pipeline are pleased to announce that today, March 15, 2023, Cedar LNG received a positive Decision Statement from the federal Minister of Environment and Climate Change. This decision follows the issuance of a provincial Environmental Assessment Certificate on March 14, 2023.
Collectively, the Certificate and Decision Statement represent a significant step forward for Cedar LNG. We look forward to working in partnership with neighbouring Indigenous Nations and communities to continue to progress this transformative project towards a positive Final Investment Decision.
Haisla Nation and Pembina Pipeline achieve historic milestones for Canada’s first Indigenous majority-owned LNG facility.
KITIMAT, BRITISH COLUMBIA, March 14, 2023 – The Haisla Nation and Pembina Pipeline Corporation (“Pembina”) (TSX: PPL; NYSE: PBA), partners in the development of the proposed Cedar LNG Project (“Cedar LNG” or the “Project”), are pleased to announce that Cedar LNG today has received its Environmental Assessment Certificate (“EAC”) from the B.C. Environmental Assessment Office, and has signed a Memorandum of Understanding (“MOU”) with ARC Resources Ltd. (“ARC”) for a long-term liquefaction services agreement.
Cedar LNG is a proposed floating liquified natural gas (“LNG”) facility located on Haisla Nation-owned land in Kitimat, B.C. with the capacity to export three million tonnes per year of LNG. It is strategically positioned to leverage Canada’s abundant and sustainable natural gas supply and deliver a lower-carbon energy option to global markets.
“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,” said Crystal Smith, Chief Councillor for Haisla Nation. “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 will benefit Pembina and its customers, the Haisla Nation, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy,” said Scott Burrows, Pembina’s President and Chief Executive Officer. “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.”
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, with which Cedar LNG has a long-term transportation agreement, a deep-water port, roads, and other infrastructure.
Cedar LNG also received its first permit from the BC Energy Regulator for the approximately 8.5 kilometre pipeline that will connect the Project into the Coastal GasLink pipeline.
Critical to Cedar LNG’s success to date has been the strong support of neighbouring Nations. Years of collaboration and constructive engagement with these Nations have helped to ensure the Project will be designed, constructed, and operated responsibly, while providing benefits through construction jobs and contracting, training opportunities, long-term employment, and other measures that will contribute to economic prosperity in the region.
Commercial Update
Cedar LNG has entered into an MOU for a 20-year liquefaction services agreement with ARC Resources. The parties are working towards finalizing a definitive agreement for 1.5 million tonnes of LNG per year, equivalent to approximately 200 million standard cubic feet per day of natural gas, or approximately half of Cedar LNG’s production.
“We are pleased to partner with Cedar LNG on this important infrastructure project for Canada. Through responsible development, innovation, and collaboration, we can advance the export of more Canadian energy to global markets,” said Terry Anderson, President and Chief Executive Officer, ARC Resources. “This agreement is an important step forward in delivering our low-cost, low-emission natural gas to key demand markets, and increasing ARC’s exposure to LNG-linked natural gas prices.”
“We are pleased to have ARC Resources as Cedar LNG’s first customer. ARC’s asset quality, leading ESG performance and financial strength, are important attributes in an LNG partner and will help drive our project forward,” said Doug Arnell, Cedar LNG Chief Executive Officer. “In the coming months, we will be focused on advancing work across four critical streams – engineering, regulatory, commercial discussions, and financing so that we are well positioned to deliver a project the Haisla Nation, Pembina, British Columbia, and the rest of Canada will be proud to showcase.”
Cedar LNG continues to progress commercial discussions with other potential customers, all of which are investment grade counterparties, for long-term volume commitments.
A final investment decision for the Project is anticipated in the third quarter of 2023.
About Cedar LNG The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas 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.
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 more than 65 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.
About ARC Resources
ARC Resources Ltd. is a pure-play Montney producer and one of Canada’s largest dividend-paying energy companies, featuring low-cost operations and leading ESG performance. ARC’s investment-grade credit profile is supported by commodity and geographic diversity and robust risk management practices around all aspects of the business. ARC’s common shares trade on the Toronto Stock Exchange under the symbol ARX. For more information, visit www.arcresources.com.
Forward-Looking Statements Certain information contained in this press release may be “forward-looking” in nature and is based on the Cedar LNG project partner’s current expectations, estimates, judgments and projections. All statements, other than statements of historical fact, which address activities, events or developments that the Cedar LNG project partners expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as “may”, “will”, “estimate”, “anticipate”, “believe”, “expect”, “plan”, “intend”, “target”, “project”, “forecast” or similar words suggesting future outcomes or outlook. The Cedar LNG project partners make no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking information contained herein is made as of the date hereof, unless otherwise noted, and the Cedar LNG project partners do not undertake any obligation to update or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
We are excited to share highlights from the past few months – including the launch of the Cedar LNG Community Investment Program, an update on our environmental assessment, and highlights from attending the World Gas Conference.
Cedar LNG is grateful to all those who have participated since the public comment period for the project’s environmental assessment certification application opened on February 28, 2022.
For those that are still interested, the public comment period closes soon and the B.C. Environmental Assessment Office (EAO) will accept comments up to midnight on April 14, 2022. You can view our Application and submit your comments through the B.C. EAO website here.
We also encourage you to check view our Discussion Guide that provides an overview of the proposed project and its environmental assessment.
Following the public comment period, Cedar LNG will develop a consultation summary report that details community engagement and consultation efforts.
Reach out with any questions or feedback for the Cedar LNG Team at info@cedarlng.com.
We look forward to continuing our work together as we move Cedar LNG forward.
As part of Cedar LNG’s environmental assessment review, the B.C. Environmental Assessment Office is hosting a 45-day public comment period from February 28 to April 14. As part of this comment period, you are invited to learn more and provide your feedback. Read our latest project update to learn about our environmental assessment and how you can get involved.
Haisla Nation and Pembina take an important step closer to driving Indigenous-led economic growth and extending the global reach of Canadian LNG
KITIMAT, BC, February 8, 2022 – The Haisla Nation-owned Cedar Liquefied Natural Gas Project (Cedar LNG) has reached key milestones for its proposed export facility in Kitimat, British Columbia. Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline Corporation (Pembina) and is strategically positioned to leverage Canada’s abundant natural gas supply and provide a critical, Indigenous-partnered solution to support the global clean energy transition.
With recent advancements in the project’s regulatory and engineering development, Haisla Nation Chief Councillor, Crystal Smith, is optimistic about what Cedar LNG means for the future of the region.
“The Cedar LNG project will be the largest First Nation-owned infrastructure project in Canada, creating jobs, contracting and other economic opportunities for the Haisla Nation, the community of Kitimat, neighbouring Indigenous Nations, and the local region,” says Smith. “Cedar LNG represents long-term growth for our region in a way that protects our land and environment, and we are excited to see the project move forward in its environmental assessment process with innovative technology and reduced environmental footprint.”
Environmental Assessment Certificate application submitted Cedar LNG’s application for an Environmental Assessment Certificate (EAC) was recently submitted to the British Columbia Environmental Assessment Office, moving the project into the 180-day application review phase. This key project milestone comes following detailed studies, engineering and meaningful engagement with Indigenous and local communities.
“The submission of our application for an EAC represents another significant step forward in exporting Canadian LNG to overseas markets, while supporting long-term prosperity for the Haisla Nation and the region,” said Scott Burrows, Pembina’s Interim President and Chief Executive Officer (CEO). “Each time we’ve returned to our design, whether to include community input or account for leading technology, we’ve made important improvements that have resulted in a superior project that respects the values of the local community and minimizes environmental effects.”
The Cedar LNG team looks forward to continuing to work collaboratively with Indigenous and local communities through the application review phase to address community interests and concerns, so that together, we are poised to successfully deliver this critically important project.
Front-End Engineering and Design (FEED) contract awarded Cedar LNG is also pleased to announce an agreement with Black & Veatch and Samsung Heavy Industries (SHI) for the front-end engineering and design (FEED) of the Project’s proposed floating liquefaction, storage and offloading unit (the “FLNG”).
“Cedar LNG is rooted in meaningfully creating a low carbon, Indigenous-led business that respects local values and protects the environment,” said Doug Arnell, Cedar LNG CEO. “The Project’s low carbon footprint, coupled with the use of Black & Veatch and Samsung’s expertise and technology will result in a state-of-the-art facility the Haisla Nation, British Columbia and Canada can be proud of.”
Cedar LNG expects to make a final investment decision in 2023 following completion of the environmental assessment process. Subject to additional factors, including regulatory and other approvals, the expected in-service date for the project is in 2027.
About Cedar LNG The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas (FLNG) 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 liquefied natural gas (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.
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.
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. The Company 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.
Forward-Looking Statements
Certain information contained in this press release may be “forward-looking” in nature and is based on the Cedar LNG project partner’s current expectations, estimates, judgments and projections. All statements, other than statements of historical fact, which address activities, events or developments that the Cedar LNG project partners expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as “may”, “estimate”, “anticipate”, “believe”, “expect”, “plan”, “intend”, “target”, “project”, “forecast” or similar words suggesting future outcomes or outlook. The Cedar LNG project partners make no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking information contained herein is made as of the date hereof, unless otherwise noted, and the Cedar LNG project partners do not undertake any obligation to update or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
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.
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.
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.
