Black & Veatch Signs Agreement Marking Important EPC Step in Canada’s First FLNG Project
Agreement secures shipyard capacity for Cedar LNG proposed floating LNG facility
Global liquefied natural gas (LNG) infrastructure solutions leader Black & Veatch has signed a “heads of” agreement (HOA) with Cedar LNG Partners LP and Samsung Heavy Industries (SHI) to secure capacity in SHI’s shipyard to support Cedar LNG’s targeted commercial startup in Kitimat, British Columbia.
As part of pursuing the project within the traditional territory of the Haisla Nation, the HOA also calls for the stakeholders to work together to exclusively advance the engineering, procurement and construction (EPC) agreement for the proposed floating LNG (FLNG) facility. All parties are working diligently to achieve a lump sum EPC agreement this month, with a final investment decision (FID) by Cedar LNG shortly after.
Cedar LNG is strategically positioned to leverage Canada’s abundant natural gas supply and British Columbia’s growing LNG infrastructure to produce industry-leading, low-carbon and cost-competitive LNG for overseas markets. This export facility will use a near-shore FLNG vessel utilizing Black & Veatch’s PRICO liquefaction technology integrated with the hull and LNG storage tanks. Black & Veatch will be responsible for complete topside design and equipment supply.
“As an industry leader in global FLNG solutions, Black & Veatch will draw on its deep experience and innovation in collaboratively helping make this important project a reality for the market,” said Laszlo von Lazar, president of Black & Veatch’s energy and process industries business. “As decarbonization efforts accelerate, this project offers another example of how the LNG industry is investing in innovation and technology to reduce its carbon footprint.”
“Through this agreement, we are accessing world-class expertise in the construction and delivery of FLNG production vessels," said Doug Arnell, Cedar LNG’s chief executive officer. “Together with renewable power from the BC Hydro grid, this will result in an environmentally leading, state-of-the-art facility for Cedar LNG, with one of the lowest carbon footprints in the world.”
This agreement builds further momentum for the project and follows receipt of all major regulatory approvals and the signing of memorandums of understanding (MOU) for long-term liquefaction services with investment-grade counterparties for the project’s total LNG capacity.
Editor’s Notes:
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About Black & Veatch
Black & Veatch is a 100-percent employee-owned global engineering, procurement, consulting and construction company with a more than 100-year track record of innovation in sustainable infrastructure. Since 1915, we have helped our clients improve the lives of people around the world by addressing the resilience and reliability of our most important infrastructure assets.
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About Cedar LNG
The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas facility in Kitimat, British Columbia, Canada, within the traditional territory of the Haisla Nation. Strategically positioned to leverage Canada’s abundant natural gas supply and BC’s LNG infrastructure, Cedar LNG will be powered by renewable electricity from BC Hydro, making it one of the lowest carbon intensity LNG facilities in the world.
More information on Cedar LNG can be found at www.cedarlng.com.
About Haisla Nation
The Haisla Nation is the band government of the Haisla people. Our mission is to build a powerful, prosperous and proud community, healthy in mind, body and spirit. We believe in building a strong and thriving community, with healthy and happy members and a sustained and prosperous environment. We are about 1700 people, with the majority living in Kitamaat Village. We have lived off the land and waters of our traditional territory for thousands of years, and it remains the focus of all we do. We believe that careful and appropriate economic development will bring our people necessary self-sufficiency. Sustainable and realistic economic opportunities are increasingly available and promise benefits for our people – and for every British Columbian. We know that in order to attain strength and independence our Nation must work together – with government, business, the community, and internally – with a spirit of respect and partnership.
For more information, visit www.haisla.ca.
About Pembina
Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for more than 65 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities.
For more information, visit www.pembina.com.
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