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Pembina's Cedar LNG Project Receives CAD 200M Government Funding
LNGCheniere(LNG) ZACKS·2025-03-25 16:55

Core Insights - Pembina Pipeline Corporation's Cedar LNG project has secured up to CAD 200 million in funding from the Canadian government through the Strategic Innovation Fund [1][6] - The project is valued at 4.17billionandisexpectedtobethelargestinfrastructuredevelopmentinCanada,withapositivefinalinvestmentdecisionmadeinJune2024[2][3]−CedarLNGaimstoproduceultra−lowcarbonLNGusingcleanhydroelectricity,contributingtobothenergysecurityandenvironmentalgoals[4][7]ProjectOverview−CedarLNGwillfeatureafloatingliquefiednaturalgas(FLNG)processingfacilityandamarineexportterminalinKitimat,BritishColumbia,expectedtocomeonlinebylate2028[3][9]−Thefacilitywillutilizeair−cooledprocesstechnology,markingitasthefirstFLNGprojectgloballytoimplementthistechnology[5]EconomicImpact−Theprojectisanticipatedtocreateapproximately300full−timeconstructionandtradesjobs,alongwithopportunitiesfor100highlyskilledworkers[8]−Itisexpectedtocontributeover4.17 billion and is expected to be the largest infrastructure development in Canada, with a positive final investment decision made in June 2024 [2][3] - Cedar LNG aims to produce ultra-low carbon LNG using clean hydroelectricity, contributing to both energy security and environmental goals [4][7] Project Overview - Cedar LNG will feature a floating liquefied natural gas (FLNG) processing facility and a marine export terminal in Kitimat, British Columbia, expected to come online by late 2028 [3][9] - The facility will utilize air-cooled process technology, marking it as the first FLNG project globally to implement this technology [5] Economic Impact - The project is anticipated to create approximately 300 full-time construction and trades jobs, along with opportunities for 100 highly skilled workers [8] - It is expected to contribute over 275 million to Canada's GDP during construction and nearly $85 million annually once operational [8] Operational Capacity - Upon commencing operations, Cedar LNG will have the capacity to process and liquefy around 400 million standard cubic feet of natural gas per day and produce 3.3 million tons of LNG per year for international markets [9] Construction Timeline - Construction of the marine terminal and associated pipelines is set to begin in Q2 2025, with the most intensive construction activities expected in 2026 [10]