Canada’s Cedar LNG secures shipyard capacity deal for floating LNG newbuild

The Haisla Nation and Pembina Pipeline Corporation, partners in the proposed Cedar LNG project on the coast of British Columbia, Canada, have announced the signing of a heads of agreement with South Korea’s Samsung Heavy Industries and US Black & Veatch to secure access to shipyard capacity and support construction and delivery of a new floating LNG production vessel.

The parties are expected to finalize a lump sum engineering, procurement and construction agreement in December of this year.

“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.”

Cedar LNG will include supporting onshore components, marine infrastructure and a jetty-moored floating nearshore LNG production unit, Kelvin Sam, principal research analyst at S&P Global Commodity Insights, said. The Indigenous majority-owned project, located in Kitimat, BC, could have the capacity to export up to 3 million mt/year of LNG. Commercial operations are targeted for 2027.
Source: Platts