- Pembina Pipeline (TSX:PPL) and the Haisla Nation have revealed a positive final investment decision on the Cedar LNG project in British Columbia
- This marks the first Indigenous-owned LNG project in the world
- The project will be built by the Haisla Nation, which owns 50.1 per cent of the project, and Pembina Pipeline which owns 49.9 per cent
- Shares of Pembina Pipeline are down 0.56 per cent to C$49.89 as of 10:58 am ET
Pembina Pipeline (TSX:PPL) and the Haisla Nation have revealed a positive final investment decision on the Cedar LNG project in British Columbia.
In a news release, the company stated the project will be built by the Haisla Nation, which owns 50.1 per cent of the project, and Pembina Pipeline which owns 49.9 per cent.
This marks the first Indigenous-owned LNG project in the world, which is a floating liquefied natural gas facility with the potential to produce 3.3 million tons per year in the traditional territory of the Haisla Nation on the west coast of Canada.
“Today, the Haisla Nation, with our partner Pembina, has made history as the world’s first indigenous community to develop an LNG facility as majority owners,” Crystal Smith, Chief Councillor of the Haisla Nation, said in a statement. “Because of our Nation’s determination and environmental leadership, Cedar LNG will make the most significant mark on economic reconciliation ever in our country.”
Notably, the facility will be powered by renewable electricity from BC Hydro, making it one of the lowest-emitting LNG facilities in the world.
“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,” Scott Burrows, CEO of Pembina Pipeline, said in a statement.
The estimated capital cost of the Cedar LNG project is C$5.5 million and is expected to be funded with asset-level debt financing for approximately 60 per cent of the project cost. Meanwhile, the remaining 40 per cent will be financed through equity contributions from both parties.
The project is expected to leverage Canada’s abundant natural gas supply from the Western Canadian Sedimentary Basin to access global markets. Under a transportation agreement with Coastal GasLink Pipeline Limited Partnership, the facility will receive 400 million cubic feet per day of Canadian natural gas through the Coastal GasLink pipeline.
“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,” B.C. Premier Eby said in a statement.
It is anticipated the project will be in service by late 2028.
Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas facility in Kitimat, B.C., within the traditional territory of the Haisla Nation.
Pembina Pipeline is an energy transportation and midstream service provider that 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 terminal business.
Shares of Pembina Pipeline (TSX:PPL) are down 0.56 per cent to C$49.89 as of 10:58 am ET.
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