Tuesday, June 8, 2021

Cedar LNG gains new investor, with Pembina Pipelines signing on for 50 percent share

A proposed LNG terminal development by the Haisla Nation has attracted a high profile Canadian investor, with Pembina Pipeline Corporation announcing it intends to take a 50% stake in the floating liquefied natural gas facility to be located across Kitimat arm from Kitamaat Village.

The Pembina share would make them partners in the project with the Haisla Nation, with Pembina to invest about $90 million into Cedar LNG over the next 24 months, including costs to acquire its interest in the project as well as development costs prior to the final investment decision (FID). 

The company, which will acquire the equity interests in Cedar LNG from PTE Cedar LP and Delfin Midstream Inc, will operate the project going forward. Haisla will own the remaining 50% stake.   

Pembina's President and Chief Executive Officer, Mick Dilger, noted of their past work with the Haisla which led to today's announcement: 

"We have worked with the Haisla Nation on and off for over a decade with three different Haisla Nation leaders, maintaining a positive relationship throughout that time. I am simply delighted that this long-term relationship has led us to this tremendous opportunity to finally partner with the Haisla Nation. At Pembina, our goal is to leave communities in a better situation than we find them, which is what we have recently done in Prince Rupert, and what we will do here. This Project will bring a second product to global markets, consistent with our stated strategy, with more to come."

Haisla Nation Chief Councillor Crystal Smith also looked to Pembina's past history as part of the partnership potential that the Haisla were looking for.

"It was important for us to find a partner with the same values of environmental protection and community-centered development. Pembina's long history of safe, reliable operations, and engagement with local communities made them the distinct choice for Cedar LNG. With a strong partnership, Cedar LNG will bring tremendous economic opportunities and benefits ensuring the Haisla people have control of our own future."

The partnership announcement comes as the Haisla led project prepares to host two Virtual Open Houses this week to outline their plans for development of the facility.

Pembina also operates a Liquid Propane Terminal in Prince Rupert on Watson Island, that facility went into operation earlier this spring.

For more on the Cedar LNG project see our archive page here.

Further notes on Pembina's Prince Rupert terminal can be found here.

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