Pembina Pipeline Corp said on Tuesday it would buy a 50% stake in Canada’s proposed Cedar LNG Project to develop the floating liquefied natural gas facility in British Columbia in partnership with Indigenous group, The Haisla Nation.
Pembina expects 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.
Cedar LNG, which will have LNG liquefaction capacity of about three million tonnes per annum, lies within the traditional territory of the Haisla Nation and aims to provide liquefied natural gas to Asia-Pacific markets.
The estimated gross project cost of Cedar LNG is $2.4 billion, and the FID is expected in 2023.
The investment comes as investors have been pushing for clean energy alternatives to combat climate change. Demand for super-cooled LNG has surged in recent years as large, energy-consuming nations including China and India wean themselves off dirtier coal.
Demand is expected to keep hitting fresh highs, but three North American projects have stopped development in the past few months, as customers remain hesitant to sign long-term purchase agreements needed for financing.