A four-year Canadian export license extension has been granted to the delayed Cedar LNG project, which will be sited on the northwest coast of British Columbia.
The Canada Energy Regulator reset the license deadline for beginning deliveries to May 2030 after the LNG terminal’s sponsors, Haisla Nation at Kitimat and Pembine Pipeline Corp., were going to miss the original target of 2026.
The sponsors reportedly say this was due to delays by other projects.
According to a Natural Gas Intel report, they requested the extension in April.
Cedar’s 25-year export license allows overseas sales volumes of up to 830 MMcf/d.
The planned $3 billion first phase of the project requires tanker shipments of 400 MMcf/d from a floating terminal.
The sponsors claimed the setback was due to relying on gas supply from the Coastal Gaslink pipeline that is now under construction across the Montney Shale for the LNG Canada terminal. This is being built on Haisla territory at Kitimat.
According to Cedar’s application for the license extension, access to gas depended on LNG Canada reaching a favourable final investment decision (FID).
“While this FID was originally planned for the end of 2016, a positive FID was not announced by LNG Canada until October 1st, 2018,” the application stated.
Additionally, the application says all Canadian LNG export projects are risk propositions.
“These include uncertainty within federal and provincial regulatory processes, global supply chain constraints, constantly evolving restrictions and impacts associated with the COVID-19 pandemic, ongoing commercial negotiations, and third-party impacts such as interruptions in gas or power supplies,” noted the application.
The project reportedly still advances.
A formal public comment stage by the BC Environmental Assessment Office recently ended, and a community investment program is seeking support in Kitimat.
Project leaders have reportedly visited a South Korean shipyard to see Samsung Heavy Industries and Black & Veatch, who were chosen to build the Cedar LNG vessel.
Energy News
