Cedar LNG announces positive final investment decision
The Haisla Nation and Pembina Pipeline Corporation, partners in Cedar LNG Partners LP (“Cedar LNG”), announced a positive Final Investment Decision (“FID”) on the Cedar LNG Project, a floating liquefied natural gas (“LNG”) (“FLNG”) facility with a nameplate capacity of 3.3 million tonnes per annum, located in the traditional territory of the Haisla Nation, on Canada’s West Coast, according to the company's release.
The Project is expected to be funded with asset-level debt financing for approximately 60 percent of the Project cost. Cedar LNG has secured a construction term loan with a syndicate of banks. The remaining approximately 40 percent of the costs of the Project are expected to be financed through equity contributions from both partners. The Haisla Nation have obtained committed capital through the First Nations Finance Authority to fund their 20 percent equity contribution to the Project. Pembina continues to anticipate its equity contribution will be funded from cash flow from operating activities.
Cedar LNG is majority-owned by the Haisla Nation, in partnership with Pembina Pipeline Corporation, with 50.1% and 49.9% ownership, respectively. The Project is strategically positioned to leverage Canada’s abundant natural gas supply from the Western Canadian Sedimentary Basin to access global markets and is expected to achieve higher prices for Canadian producers and enhance global energy security. Cedar LNG made several innovative design decisions to minimize the Project’s environmental footprint and ensure it is one of the lowest-emitting LNG facilities in the world. One of the most important decisions was to power the facility with renewable electricity from BC Hydro. In addition, the choice of site location allows the Project to leverage existing LNG infrastructure, including the Coastal GasLink pipeline, a deep-water port, roads, and other infrastructure.
Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America’s energy industry for 70 years. Pembina 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 terminals business.
