A planned Canadian liquefaction project Cedar LNG has pencilled in an agreement to reserve berth space at South Korea’s Samsung Heavy Industries for a three-million-tonnes-per-annum floating LNG production unit.
Cedar LNG, a partnership of the Haisla Nation and Pembina Pipeline said it has signed a heads of agreement with SHI and engineers Black & Veatch.
“The HOA provides Cedar LNG, on an exclusive basis with SHI and Black & Veatch, secure access to shipyard capacity to meet Cedar LNG’s target commercial operations date,” the project company said.
The parties expect to sign a lump-sum engineering, procurement, and construction agreement in December 2023.
The proposed project would see the FLNG unit located on site at Kitimat in British Columbia, within the traditional territory of the Haisla Nation. It would include storage capacity for up to 250,000-cbm of LNG.
The project partners are targeting taking a final investment decision by the end of 2023, but said in a statement: “... Given the complexity and sequencing of aligning the multiple work streams, which are required to facilitate project financing, FID may move into early 2024.”
Commercial operations are due to start in 2027.
Doug Arnell, chief executive of Cedar LNG, said: “This exclusive relationship with SHI and Black & Veatch to lock in shipyard capacity for the construction of the Cedar LNG FLNG vessel is a major step forward for our project.”
Arnell, who formerly headed up Golar LNG, added: “Through this agreement, we are accessing world-class expertise in the construction and delivery of floating LNG production vessels.
He said the use of renewable power from the BC Hydro’s grid will result in Cedar LNG having “one of the lowest carbon footprints in the world”.
