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The Haisla Nation and Pembina Pipeline Corp., partners in Cedar LNG Partners LP, has announced a positive final investment decision (FID) on the Cedar LNG project, a floating LNG (FLNG) facility with a nameplate capacity of 3.3 million tpy, located in the traditional territory of the Haisla Nation, on Canada’s West Coast.
“Together with our partner, the Haisla Nation, we are honoured to have made Cedar LNG a reality. This is a historic moment, and we are proud to be moving forward with a project that will deliver industry-leading, low-carbon, cost-competitive Canadian LNG to overseas markets and contribute to global energy security, while delivering jobs and economic prosperity to the local region,” said Scott Burrows, Pembina’s President and CEO. “Cedar LNG aligns perfectly with our strategy and where we want to be as a company moving forward. The Cedar LNG Project will enhance the resiliency of Pembina’s business, provide much needed new egress and greater access to global markets for our customers, and reflects the Haisla Nation and Pembina’s shared values and commitment to supporting a more sustainable future.”
“As a result of the Haisla Nation’s vision and determination, today we are demonstrating Canada’s ability to sustainably grow its LNG export sector to support the global clean energy transition,” added Doug Arnell, CEO of Cedar LNG. “Moreover, the Haisla Nation and Pembina, as true partners, are demonstrating a new model for how industry and Indigenous communities can work together for mutual benefit.”
David Eby, Premier of British Columbia (B.C.), said: “This decision shows not only the perseverance of the Haisla Nation in achieving this historic milestone, but also confidence of investors in B.C.’s economy, and how the future for the natural resources sector is bright and will continue to support B.C.’s strong economic performance, which has led Canada’s large provinces in GDP growth since 2017. Cedar LNG is a shining example of how natural resource development should work in our province – in full partnership with First Nations and with the lowest emissions possible. By working together, we can build a stronger and cleaner economy that creates opportunities and benefits for all.”
The project is expected to be funded with asset-level debt financing for approximately 60% of the project cost. Cedar LNG has secured a construction term loan with a syndicate of banks.
The remaining approximately 40% of the costs of the project are expected to be financed through equity contributions from both partners. The Haisla Nation have obtained committed capital through the First Nations Finance Authority to fund their 20% equity contribution to the Project. Pembina continues to anticipate its equity contribution will be funded from cash flow from operating activities. Pembina expects no material change to its 2024 Cedar LNG equity contributions disclosed previously, with no incremental post-FID contributions in 2024 anticipated.
Prior to FID, Pembina was required to provide financial assurances to advance project-related upstream infrastructure projects. Following the positive FID, the required financial assurances will be transferred to Cedar LNG. Cedar LNG has secured a letter of credit facility for the ongoing funding of the required financial assurances.
Cedar LNG received strong support from domestic and international capital providers reflecting the positive merits of the project.
Read the article online at: https://www.lngindustry.com/floating-lng/26062024/cedar-lng-announces-positive-fid/
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