Cedar LNG said in its project update on May 27 that the Haisla Nation has chosen “megúgu” as the name for the floating LNG facility.
According to Cedar LNG, “megúgu means ‘Spirit of the Cedar Tree’ in xa’isla.”
“The name roots our modern-day project—Cedar LNG—in the cultural and traditional practices of Haisla Nation, for whom the physical and symbolic aspects of the Cedar Tree hold deep meaning,” it said.
In June 2024, Pembina and the Haisla Nation took the final investment decision on the $4 billion LNG project, which is expected to be in service in late 2028.
The Haisla Nation has a 50.1 percent stake and Pembina owns 49.9 percent in the project, which includes the construction of a floating LNG facility with a nameplate capacity of 3.3 million tonnes per annum (mtpa).
Cedar LNG issued a notice to proceed to Samsung Heavy Industries and Black & Veatch for its floating LNG production unit following the finalization of long-term commercial offtake agreements.
SHI is responsible for the hull of the FLNG and topside plant processes, while Black & Veatch will provide its PRICO technology.
Pipeline construction
In April, Cedar LNG selected Ledcor Haisla (LHLP) to construct the Cedar LNG pipeline
that will deliver natural gas to the Cedar LNG facility from Shell’s LNG Canada site, which will receive gas from the Coastal GasLink pipeline.
Haisla Nation and Ledcor established a joint venture over 10 years ago to execute projects in the Kitimat region.
Cedar LNG said that pipeline construction started earlier this spring,
Construction of the pipeline is expected to be completed in the fourth quarter of 2026, with other project components advancing in tandem.
Moreover, the marine terminal site construction is anticipated to start in the second quarter of 2025.
Overall peak construction is expected in 2026.
Cedar LNG said the development of the floating LNG facility is “underway overseas with the
project’s anticipated in-service date expected in late 2028.”
Expansion
Scott Burrows, president and CEO of Pembina, recently said that the company sees enough demand for a potential second phase of the Cedar LNG project.
“We saw that from our recontracting efforts. Based on early stages negotiations on Cedar capacity, we believe there is demand for Cedar 2,” he said during Pembina’s first-quarter earnings call on May 9.
“But until we have a line of sight to that gas on Coastal GasLink or other solutions, that’s kind of the gating item, and that’s something that we continue to work on,” he said.
Cedar LNG has secured 20-year take-or-pay liquefaction tolling services agreements with ARC Resources and Pembina for 1.5 mtpa of LNG each.
It also signed a 20-year take-or-pay fixed toll contract with compatriot ARC Resources.
As part of the agreement, ARC will supply Cedar LNG with about 200 million cubic feet per day of Canadian natural gas for liquefaction at the Cedar LNG facility.
Pembina has executed an identical bridging agreement with Cedar LNG for 1.5 mtpa of capacity and is working to assign its contracted capacity to a third-party.
