Cedar LNG Gets Funding for Clean Power

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The Cedar LNG liquefied natural gas (LNG) facility in British Columbia will be among the cleaner facilities of its kind, with support for infrastructure that would draw on resources other than natural gas, the provincial government said.

The provincial government supported the tribal Haisla Nation, a major stakeholder, with USD$145 million toward a new 287-kilovolt transmission line and supporting infrastructure necessary to power the facility on clean energy rather than natural gas, its second such tranche in as many years.

"Our vision for Cedar LNG was always predicated on being able to source the cleanest power option to ensure our project delivers LNG with the lowest possible carbon footprint," Haisla Nation Chief Maureen Nyce said Tuesday.

Joint venture partners Pembina Pipeline Corporation (Calgary, Alberta) and the indigenous Haisla Nation announced the final investment decision (FID) on the Cedar LNG project last summer. The facility will consist of a floating liquefied natural gas (FLNG) facility in Kitimat in British Columbia, with a nameplate capacity of about 400 million cubic feet per day.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project report.

Various interconnections will tie into the Coastal Gaslink network that will deliver gas to the Cedar LNG facility. The FLNG unit will be powered largely by renewable energy, with a completion date set for 2028.

All regulatory approvals have been granted, and the project is among those that Canadian leaders are embracing as an opportunity to ship its energy riches outside of North America. As of now, Canada is the top crude oil exporter to the United States, while the U.S. market is a net importer of Canadian natural gas.

Cedar LNG and another facility, LNG Canada, are part of an export goal that's found renewed importance with sweeping tariff threats from U.S. President Donald Trump. British Columbia Prime Minister David Eby said that while Trump works to insult his trading partners, Canada is a reliable and a potential supplier to the Asian economies, some of which have few resources of their own.

"Cedar LNG is a model for how LNG projects can be developed through innovation and collaboration with First Nations, while also creating good jobs and addressing climate change," said Adrian Dix, the provincial minister of energy and climate solutions.

The LNG Canada facility delivered its inaugural cargo last month. Cederic Cremers, the president of gas operations for stakeholder Shell plc (London, England), said the company expects the Asian economies to take up most of the gas from the facility, particularly as they shift away from coal for power generation.

A report published Tuesday by the Reuters news agency, citing four sources familiar with the operations, said Shell is running into technical issues at the LNG Canada facility, however. One tanker turned away without picking up its cargo, and the plant has been running at about 50% of its peak design capacity.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).