April 22nd, 2024

Pembina Pipeline deferring Cedar LNG decision until mid-year

By The Canadian Press on February 23, 2024.

Pembina Pipeline Corp. says it will defer making a final investment decision on its proposed Cedar LNG project until mid-2024. The corporate logo of Pembina Pipeline Corp. (TSX:PPL) is shown. THE CANADIAN PRESS/HO

CALGARY – Pembina Pipeline Corp. says it will defer making a final investment decision on its proposed Cedar LNG project until mid-2024.

The Calgary-based pipeline company and its project partner, the Haisla First Nation, have been working to develop plans for a floating liquefied natural gas facility in Kitimat, B.C.

The project partners had previously said a decision to go ahead with the project could be made before the end of the first quarter, with onshore construction work starting as soon as the second quarter of this year.

But Pembina now says there a number of issues that must be resolved before a final decision can be made, including ongoing negotiations for commercial offtake, agreements, the obtaining of certain third-party consents, and project financing.

Cedar LNG has already obtained all major regulatory approvals and is advancing an agreement that would connect the floating facility to Coastal GasLink, the TC Energy-owned pipeline that will also carry natural gas to the Shell-led LNG Canada facility currently under construction.

The capital cost of Cedar LNG was originally estimated at US$2.4 billion, but Pembina Pipeline chief financial officer Cameron Goldade said Friday the company now believes it will cost more than that.

This report by The Canadian Press was first published Feb. 23, 2024.

Companies in this story: (TSX:PPL)

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