Pembina Pipeline Corp. has reported an increase in interest from potential long-term natural gas suppliers following its firm decision to proceed with the Cedar LNG project. The Calgary-based pipeline company, in partnership with the Haisla First Nation, approved the US$4-billion facility in June.
Pembina CEO Scott Burrows noted that the positive final investment decision has boosted confidence among potential suppliers, and he anticipates that the facility’s remaining uncontracted capacity will command a “premium.”
The project involves the construction of a floating liquefied natural gas terminal near Kitimat, B.C., with construction expected to begin in mid-2025. Cedar LNG will source natural gas from Western Canada to produce liquefied natural gas for export to Asian markets, with a production capacity of 3.3 million tonnes per year.
Pembina has already secured a 20-year contract with Calgary-based ARC Resources Ltd., which will supply natural gas for approximately half of Cedar LNG’s total production.