Cedar LNG, a proposed floating liquefied natural gas (LNG) facility in Kitimat, is moving forward on engineering and construction work following the signing of several long-term sales deals.

This marks a critical milestone to secure financing before a final investment decision can be made to go ahead with the project, which is expected in mid-2024.

The issuance of the notice to proceed instructs the engineering, procurement, and construction contractors, Samsung Heavy Industries and Black & Veatch, to complete the engineering and design and start construction of Cedar LNG’s advanced floating LNG (FLNG) facility.

“I am incredibly grateful to our nation, all levels of government, Pembina, and 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,” said Crystal Smith, chief councillor for Haisla Nation.

Depending on a final investment decision, once finished, the FLNG unit will be moved from Korea to the Cedar LNG site in the Haisla traditional territory in the Douglas Channel.

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. Then anticipated in-service date is in late 2028.

“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.