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<\/p>\nThe Haisla Nation and Pembina Pipeline Corporation, partners in the development of the proposed Cedar LNG Project, are pleased to announce that Cedar LNG has received its Environmental Assessment Certificate (\u201cEAC\u201d) from the B.C. Environmental Assessment Office, and has signed a Memorandum of Understanding (\u201cMOU\u201d) with ARC Resources Ltd. for a long-term liquefaction services agreement.<\/p>\n
Cedar LNG is a proposed floating liquified natural gas facility located on Haisla Nation-owned land in Kitimat, B.C. with the capacity to export three million tonnes per year of LNG. It is strategically positioned to leverage Canada\u2019s abundant and sustainable natural gas supply and deliver a lower-carbon energy option to global markets.<\/p>\n
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\u201cThe 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\u2019s journey towards economic self-determination,\u201d said Crystal Smith, Chief Councillor for Haisla Nation. \u201cWith Cedar LNG, we are setting a new standard of responsible and sustainable energy development. Together with our partner, Pembina, we are committed to advancing an LNG project that protects the environment, respects Haisla Nation values, and meets the highest standards of social and environmental responsibility.\u201d<\/p>\n
\u201cCedar 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,\u201d said Scott Burrows, Pembina\u2019s President and Chief Executive Officer. \u201cPembina is proud of its long history of safe and reliable operations, and we look forward to contributing our expertise as we work together to bring Canadian LNG to the world.\u201d<\/p>\n
Cedar LNG made several innovative design decisions to minimize the Project\u2019s 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, with which Cedar LNG has a long-term transportation agreement, a deep-water port, roads, and other infrastructure.<\/p>\n
Cedar LNG also received its first permit from the BC Energy Regulator for the approximately 8.5 kilometre pipeline that will connect the Project into the Coastal GasLink pipeline.<\/p>\n
Critical to Cedar LNG\u2019s success to date has been the strong support of neighbouring Nations. Years of collaboration and constructive engagement with these Nations have helped to ensure the Project will be designed, constructed, and operated responsibly, while providing benefits through construction jobs and contracting, training opportunities, long-term employment, and other measures that will contribute to economic prosperity in the region.<\/p>\n
Commercial Update<\/p>\n
Cedar LNG has entered into an MOU for a 20-year liquefaction services agreement with ARC Resources. The parties are working towards finalizing a definitive agreement for 1.5 million tonnes of LNG per year, equivalent to approximately 200 million standard cubic feet per day of natural gas, or approximately half of Cedar LNG\u2019s production.<\/p>\n
\u201cWe 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,\u201d said Terry Anderson, President and Chief Executive Officer, ARC Resources. \u201cThis agreement is an important step forward in delivering our low-cost, low-emission natural gas to key demand markets, and increasing ARC\u2019s exposure to LNG-linked natural gas prices.\u201d<\/p>\n
\u201cWe are pleased to have ARC Resources as Cedar LNG\u2019s first customer. ARC\u2019s asset quality, leading ESG performance and financial strength, are important attributes in an LNG partner and will help drive our project forward,\u201d said Doug Arnell, Cedar LNG Chief Executive Officer. \u201cIn the coming months, we will be focused on advancing work across four critical streams \u2013 engineering, regulatory, commercial discussions, and financing so that we are well positioned to deliver a project the Haisla Nation, Pembina, British Columbia, and the rest of Canada will be proud to showcase.\u201d<\/p>\n
Cedar LNG continues to progress commercial discussions with other potential customers, all of which are investment grade counterparties, for long-term volume commitments.<\/p>\n
A final investment decision for the Project is anticipated in the third quarter of 2023.<\/p>\n