$4 Billion BC Liquified Natural Gas Export Facility Gets Green Light

The Haisla First Nation's Kitimaat Village is seen in an aerial view along the Douglas Channel near Kitimat, B.C., on Jan. 10, 2012. The Canadian Press/Darryl Dyck

A new liquified natural gas export plant on British Columbia’s North Coast will soon be a reality.

The project was given the green light after the Haisla Nation and its partner Pembina Pipeline Corporation announced a final investment in the Cedar LNG plant, a US$4 billion floating liquefied natural gas (LNG) facility near Kitimat, located on Haisla territory.

The First Nation is a majority owner in the project with a 50.1 percent stake while Calgary-based Pembina has a 49.9 percent stake.

Haisla Nation Chief Councillor Crystal Smith said the project was “trailblazing a path for economic independence.”

“It has been a journey,” she said in a video announcement. “It’s the first project of its kind, indigenous-led, majority Indigenous-owned.”

Pembina president and CEO Scott Burrows described the announcement as a “historic moment.”

“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,” Mr. Burrows said in a company news release.

“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 reflect the Haisla Nation and Pembina’s shared values and commitment to supporting a more sustainable future.”

Cedar LNG CEO Doug Arnell said the project was an example of how indigenous communities and the industry can work together.

“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,” Mr. Arnell said in the press release.

Prime Minister Justin Trudeau said he was pleased the project is moving forward with so many “firsts,” adding that it would have a low-carbon footprint.

“The world is evolving. The way we get our energy is evolving. The way we do business is evolving,” Mr. Trudeau said in a video, adding that the facility is a model for “economic reconciliation” in Canada.

B.C. Premier David Eby said the project illustrates the strength of the province’s natural resources sector.

“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,” Mr. Eby said.

The project is designed to ensure the it is one of the lowest-emitting LNG plants in the world by using renewable electricity from BC Hydro to power the facility. Cedar LNG’s site location allows it to use existing infrastructure such as the Coastal GasLink pipeline, a deep-water port, and roads.

The facility will see 400 million cubic feet per day of natural gas pumped in. Its location also provides a short shipping route to Asian markets.

The plant is expected to be up and running by 2028.