Liquefied natural gas (LNG) exports off British Columbia’s west coast inched one step closer to reality after the proposed Cedar LNG project received environmental approvals from the provincial government..Cedar is a joint venture between the Haisla First Nation and Calgary-based Pembina Pipeline. In addition, Cedar announced it reached a 20-year commercial agreement with ARC Resources to supply gas to the facility. A final investment decision is expected later this year..If approved, the $3.3-billion project would ship about 400 million cubic feet of gas per day from the prolific Montney gas fields in northeast BC and Alberta to Kitimat, where it would be loaded onto ocean-going vessels for export..In a news release, Cedar said it also received its first permit from the BC Energy Regulator for the 8.5-km pipeline that will connect the terminal into the Coastal GasLink pipeline, which is under construction..The parties hailed what it described as an “historic milestone,” both for Canadian LNG and indigenous people in BC..“The receipt of our EAC is the culmination of more than a decade of work by the Haisla Nation and marks a significant milestone for the Cedar LNG project and the Haisla Nation’s journey towards economic self-determination,” said Crystal Smith, Haisla’s chief counsellor who noted the project would provide long-term jobs and contracting, training opportunities, and other benefits that will contribute to economic prosperity of neighbouring indigenous groups in the region..“Cedar LNG will benefit Pembina and its customers, the Haisla Nation, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy,” added Scott Burrows, Pembina’s president and CEO..Cedar said it 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 by powering the facility with renewable electricity from BC Hydro. In addition, the choice of site location allows it to leverage existing LNG infrastructure including the Coastal GasLink pipeline, a deep-water port, roads and other infrastructure..For its part, ARC — a Calgary-based pure play natural gas producer — said the deal gives it exposure to global LNG prices, which are an order of magnitude higher than typical Canadian spot prices. US LNG prices were about $12.67 on Wednesday compared to $2.50 for onshore gas at the Henry Hub in Louisiana..“We are pleased to partner with Cedar LNG on this important infrastructure project for Canada. Through responsible development, innovation, and collaboration, we can advance the export of more Canadian energy to global markets,” said ARC CEO Terry Anderson..“This agreement is an important step forward in delivering our low-cost, low-emission natural gas to key demand markets, and increasing ARC’s exposure to LNG-linked natural gas prices.”
Liquefied natural gas (LNG) exports off British Columbia’s west coast inched one step closer to reality after the proposed Cedar LNG project received environmental approvals from the provincial government..Cedar is a joint venture between the Haisla First Nation and Calgary-based Pembina Pipeline. In addition, Cedar announced it reached a 20-year commercial agreement with ARC Resources to supply gas to the facility. A final investment decision is expected later this year..If approved, the $3.3-billion project would ship about 400 million cubic feet of gas per day from the prolific Montney gas fields in northeast BC and Alberta to Kitimat, where it would be loaded onto ocean-going vessels for export..In a news release, Cedar said it also received its first permit from the BC Energy Regulator for the 8.5-km pipeline that will connect the terminal into the Coastal GasLink pipeline, which is under construction..The parties hailed what it described as an “historic milestone,” both for Canadian LNG and indigenous people in BC..“The receipt of our EAC is the culmination of more than a decade of work by the Haisla Nation and marks a significant milestone for the Cedar LNG project and the Haisla Nation’s journey towards economic self-determination,” said Crystal Smith, Haisla’s chief counsellor who noted the project would provide long-term jobs and contracting, training opportunities, and other benefits that will contribute to economic prosperity of neighbouring indigenous groups in the region..“Cedar LNG will benefit Pembina and its customers, the Haisla Nation, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy,” added Scott Burrows, Pembina’s president and CEO..Cedar said it 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 by powering the facility with renewable electricity from BC Hydro. In addition, the choice of site location allows it to leverage existing LNG infrastructure including the Coastal GasLink pipeline, a deep-water port, roads and other infrastructure..For its part, ARC — a Calgary-based pure play natural gas producer — said the deal gives it exposure to global LNG prices, which are an order of magnitude higher than typical Canadian spot prices. US LNG prices were about $12.67 on Wednesday compared to $2.50 for onshore gas at the Henry Hub in Louisiana..“We are pleased to partner with Cedar LNG on this important infrastructure project for Canada. Through responsible development, innovation, and collaboration, we can advance the export of more Canadian energy to global markets,” said ARC CEO Terry Anderson..“This agreement is an important step forward in delivering our low-cost, low-emission natural gas to key demand markets, and increasing ARC’s exposure to LNG-linked natural gas prices.”
