(P&GJ) — Pembina Pipeline Corp. has been granted the permit for its proposed LNG facility by the BC Energy Regulator. This marks a significant advancement for the 3-million tonnes/year Cedar LNG plant, as reported in Pembina's Q2 2023 earnings release on August 3.
The final investment decision (FID) timeline has been revised to the fourth quarter of 2023, due to ongoing discussions and negotiations involving LNG Canada and Coastal GasLink. In March, the project received its Environmental Assessment Certificate for an 8.5-km pipeline connecting Cedar LNG to the Coastal GasLink pipeline.
In the same report, Pembina announced that Cedar LNG has secured non-binding MOUs with investment grade counterparties for long-term liquefaction services. The company is actively working towards finalizing definitive commercial agreements. Additionally, Cedar LNG initiated a second front end engineering design (FEED) process for a floating LNG vessel in late 2022, which is progressing alongside the original FEED work.
Cedar LNG is poised to provide a strategic outlet for Western Canadian Sedimentary Basin (WCSB) natural gas to access global markets, potentially raising prices for Canadian producers. Beyond financial benefits, the project is expected to contribute to emissions reduction, global energy security, and environmental sustainability.
Notably, the Cedar LNG facility's unique design as a floating vessel, manufactured within a shipyard's controlled environment, minimizes construction risks and underscores the project's commitment to eco-friendly practices. BC Hydro will power the facility, enhancing its reputation as one of the world's most environmentally conscious LNG facilities.
The Cedar LNG project is a collaborative effort between the Haisla Nation and Pembina Pipeline, planned for the Douglas Channel in Kitimat, BC.
TC Energy's Alberta Carbon Grid
Furthermore, the Cedar LNG initiative aligns with Alberta's lower-carbon economy vision. Pembina and TC Energy are leading the Alberta Carbon Grid (ACG), a transformative carbon transportation and sequestration platform. The Industrial Heartland project, the ACG's first hub, is set to transport and store up to ten million tonnes of CO2 annually, significantly contributing to emissions reduction.
The collaboration between Pembina and TC Energy continues to progress with the Alberta Carbon Grid project. This pioneering effort aims to revolutionize carbon management, allowing industries to thrive while minimizing environmental impact. Multiple hubs are envisioned throughout Alberta, starting with the Industrial Heartland project. This partnership reflects the commitment of both companies to drive positive change in the energy sector.
Surface and subsurface engineering and planning are well underway, supported by data acquisition and integration. Important milestones in 2023 include seismic data licensing and procurement, guiding the location of an appraisal well slated for drilling this year. Pembina and TC Energy's joint efforts promise a more sustainable energy landscape for Alberta and beyond.