Cedar LNG signs HOA with SHI, Black & Veatch on shipyard capacity
The Haisla Nation and Pembina Pipeline Corporation (Pembina), partners in the development of the proposed Cedar LNG project, have signed a heads of agreement with Samsung Heavy Industries (SHI) and Black & Veatch to secure access to shipyard capacity, Cedar LNG said on November 14.
The HOA provides Cedar LNG, on an exclusive basis with SHI and Black & Veatch, secure access to shipyard capacity to meet its target commercial operations date. The parties expect to finalise a lump sum engineering, procurement, and construction agreement in December of this year.
This agreement builds further momentum for the 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, Cedar LNG said.
"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, FID may move into early 2024," it said.
The Cedar LNG project is a partnership to develop a floating liquefied natural gas facility in Kitimat, British Columbia, Canada, within the traditional territory of the Haisla Nation. It is positioned to leverage Canada's abundant natural gas supply and BC's LNG infrastructure, Cedar LNG will be powered by renewable electricity from BC Hydro.