Cedar LNG Finds Midstream Partner

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Canada moved one step closer to expanding trade corridors to Asia after developers picked a contractor to develop midstream infrastructure for the Cedar LNG project in British Columbia.

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

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The Ledcor Group of Companies (Vancouver, British Columbia), a Canadian-based construction firm, established a joint venture with the Haisla Nation a decade ago to work on projects in British Columbia. Developer Cedar LNG said it picked that consortium to work on pipeline connections for the coastal facility.

"Planning for construction of the pipeline is underway including hiring, safety orientation and site preparation, with construction anticipated to commence in Q2 2025," the company said Friday.

Various interconnections will tie into the Coastal Gaslink network that will deliver 400 million cubic feet per day to the Cedar LNG facility. The floating facility will be powered largely by renewable energy, with a completion date set for 2028.

Project director Pembina finalized an offtake agreement with ARC Resources Limited (Calgary, Alberta) early this year. As part of the agreement, ARC Resources will provide Cedar LNG with natural gas from TC Energy Corporation's (NYSE:TRP) (Calgary) Coastal GasLink natural gas pipeline, which will feed LNG terminals in British Columbia through interconnections.

Canada's economy is heavily trade-dependent, with much of its goods targeting the markets in North America. It's the main source of U.S. crude oil imports by far as many of the U.S. refineries are geared to process its heavier type of oil.

A sweeping tariff agenda from U.S. President Donald Trump has roiled Canadian politics, prompting leaders to look for ways to expand trade arteries outside of North America. Despite its own gas riches, however, the United States is a net importer of natural gas from Canada.

Cedar LNG could help Canadian natural gas reach markets in Asia and elsewhere, breaking the country's North American deadlock once operations begin.

In response to trade pressures from the U.S. government, the provincial government of oil-rich Alberta proposed a joint working group in February with the federal government, provinces and territories to improve and diversify trade arteries in the nation.

"With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy -- going east to west and not always relying on north-south trade," said Devin Dreeshen, Alberta's provincial minister of transportation and economic corridors.

Trade routes out of the western Canadian coast to Asia are shorter than shipping LNG through the Gulf Coast, where deliveries help support the United States as the world leader in LNG exports.

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