The partners said they have received "strong support from domestic and international capital providers" for the financing of the project, which is expected to be in service in late 2028.
Cedar LNG will use natural gas from
While a positive final investment decision had been broadly expected in the wake of recent positive statements by project proponents, the formal go-ahead Tuesday comes as a major vote of confidence in the future of liquefied natural gas.
"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 Pembina CEO
It also marks a significant milestone for the Haisla Nation, who will be majority owners of Cedar LNG — making it the largest Indigenous-owned infrastructure project in
"Cedar LNG will make the most significant mark on economic reconciliation ever in our country," said Haisla Chief Councillor
"With Cedar LNG, we have proven that Indigenous communities can successfully forge a path to economic independence and generational prosperity."
Prime Minister
Cedar LNG is the third LNG export facility in
A smaller facility called Woodfibre LNG is under construction near
Proponents of a Canadian LNG industry say liquefied natural gas from
But environmentalists argue that LNG creates its own emissions through the liquefaction and transportation process, as well as through the drilling and flaring of natural gas in
They argue that building massive LNG terminals that require huge upfront capital investments "locks in" future greenhouse gas emissions at a time when the world needs to be planning for a lower-carbon future.
For its part, Cedar LNG will be powered by renewable electricity from BC Hydro, making it one of the lowest emitting LNG facilities in the world, the project partners say.
A formal federal Impact Assessment concluded the project's plan to reach net-zero greenhouse gas emissions by 2050 was "credible," and said the project as a whole aligns with
But the project has still faced opposition from environmentalists and some Indigenous leaders.
Cedar LNG has a 20-year contract with
The Cedar LNG facility will be linked to the Coastal GasLink pipeline, which will supply it with 400 million cubic feet of natural gas from
On Tuesday, the project partners said 60 per cent of the project will be funded through debt-financing, with the remaining 40 per cent of the costs to be financed through equity contributions from both partners.
The Haisla Nation said it has obtained committed capital through the
This report by The Canadian Press was first published
(Companies in this story: TSX:PPL; TSX:ARX; TSX:TRP)
Note to readers: This is a corrected story. A previous version misstated the number of LNG export facilities in
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