Cedar LNG Executes Heads Of Agreement With Samsung Heavy Industries, Black & Veatch

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November 22, 2023

ESG Review Staff

Aerial view of proposed Cedar LNG project site. (Image Courtesy Of Cedar LNG)

The Haisla Nation and Pembina Pipeline Corporation, partners in the development of the proposed Cedar LNG project, are pleased to announce the signing of a heads of agreement (HOA) with Samsung Heavy Industries (SHI) and Black & Veatch. Cedar LNG is a proposed floating LNG facility in Kitimat, British Columbia, Canada, within the traditional territory of the Haisla Nation.

The Xa’is’la or Haisla Nation have occupied their traditional territories in Northwestern British Columbia for more than 9000 years. (Image Courtesy Of Cedar LNG)

The HOA provides Cedar LNG, on an exclusive basis with SHI and Black & Veatch, secure access to shipyard capacity to meet Cedar LNG’s target commercial operations date. The parties expect to finalize a lump sum engineering, procurement, and construction agreement in December of this year.

Cedar LNG will be located approximately 5.3 miles (8.5 km) southwest of Kitimat, directly across Douglas Channel from Kitamaat Village. (Image Courtesy Of Cedar LNG)

“This exclusive relationship with SHI and Black & Veatch to lock in shipyard capacity for the construction of the Cedar LNG FLNG vessel is a major step forward for our project,” said Doug Arnell, Cedar LNG Chief Executive Officer. “Through this agreement we are accessing world class expertise in the construction and delivery of floating LNG production vessels, which, together with renewable power from the BC Hydro grid, will result in an environmentally leading, state-of-the-art facility for Cedar LNG, with one of the lowest carbon footprints in the world.”

In March 2023, Cedar LNG received an Environmental Assessment Certificate from the provincial government and a positive Decision Statement from the federal government. (Image Courtesy Of Cedar LNG)

This agreement builds further momentum for the Cedar LNG project and follows receipt of all major regulatory approvals and the signing of memorandums of understanding for long-term liquefaction services with investment grade counterparties for the project’s total LNG capacity.

Aerial view of the district of Kitimat. (Image Courtesy Of Cedar LNG)

Target final investment decision (FID) continues to be by the end of 2023, however, given the complexity and sequencing of aligning the multiple work streams, which are required to facilitate project financing, Cedar LNG said that FID may move into early 2024. The project is expected to begin commercial operations in 2027.