An Alberta energy company is buying 50 per cent of the proposed Cedar LNG project, providing a new partner for the Haisla Nation which owns the other 50 per cent.
Pembina Pipeline Corporation announced the deal to buy into the project from PTE Cedar and Deflin Midstream Inc. this morning, a transaction that commits itself to spending approximately US $90 million over the next two years leading to a decision on whether to proceed or not.
Pembina would also become the operator of the project which would see a floating liquefied natural gas (LNG) plant moored in the Douglas Channel, producing up to three million tonnes of LNG a year. That’s in comparison to the 14 million tonnes the LNG Canada project now under construction will produce.
Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Pembina also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business.
Based on current pricing, the project is expected to cost CDN $3 billion, employing approximately 500 people during construction and 100 people once operating.
The liquefaction plant would be placed on a floating platform at a construction site in Asia and then towed across the ocean to its mooring location adjacent to Haisla-owned land on the Douglas Channel.
Natural gas would be pumped from northeastern B.C. through the Coastal GasLink pipeline that’s now being built to feed the LNG Canada project. An eight-kilometre pipeline would be needed from leading off from the Coastal GasLink pipeline to the Cedar LNG location.
READ MORE: Haisla Nation approves partnership for Cedar LNG project