{"id":161000,"date":"2025-09-22T08:19:11","date_gmt":"2025-09-22T08:19:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/161000\/"},"modified":"2025-09-22T08:19:11","modified_gmt":"2025-09-22T08:19:11","slug":"haisla-led-cedar-lng-seeks-to-boost-future-capacity-by-25-in-b-c","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/161000\/","title":{"rendered":"Haisla-led Cedar LNG seeks to boost future capacity by 25% in B.C."},"content":{"rendered":"<p><a style=\"display:block\" href=\"https:\/\/www.theglobeandmail.com\/resizer\/v2\/CAUGD3GBAFEGVKV3ZXOV2IMSWM.JPG?auth=a5a0091b22bb7021ca49b57b2a7b8e399315916098b306e8040a121a76a59f71&amp;width=600&amp;height=400&amp;quality=80&amp;smart=true\" aria-haspopup=\"true\" data-photo-viewer-index=\"0\" rel=\"nofollow noopener\" target=\"_blank\">Open this photo in gallery:<\/a><\/p>\n<p class=\"figcap-text\">The Cedar LNG project, the first Indigenous majority-owned LNG facility in the world, is constructed on Canada&#8217;s Pacific coast in Kitimat, B.C., on Aug. 18.Jesse Winter\/Reuters<\/p>\n<p class=\"c-article-body__text text-pr-5\">The Haisla Nation-led Cedar LNG project has applied to regulators for permission to boost its future production capacity of liquefied natural gas by 25 per cent, saying the higher output will provide much-needed economic benefits.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Cedar started construction last year and is slated to begin super cooling natural gas into liquid form in late 2028, with exports to be shipped to Asia from the Haisla\u2019s traditional territory in Kitimat, B.C.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The Haisla own 50.1 per cent of Cedar, while Calgary-based Pembina Pipeline Corp. holds 49.9 per cent.<\/p>\n<p class=\"c-article-body__text text-pr-5\">\u201cAdvancement of engineering design has identified the opportunity to increase the project liquefaction capacity,\u201d Cedar said in a filing to British Columbia\u2019s Environmental Assessment Office.<\/p>\n<p class=\"c-article-body__text text-pr-5\">B.C. and the federal government have described LNG exports to Asia as a crucial way for Canada to diversify its economy and reduce reliance on the United States.<\/p>\n<p class=\"c-article-body__text mv-16 l-inset text-pb-8\" data-sophi-feature=\"interstitial\"><a href=\"https:\/\/www.theglobeandmail.com\/business\/article-lng-canada-exports-asia-us-trade-war-asia\/\" rel=\"nofollow noopener\" target=\"_blank\">As the U.S. trade war escalates, LNG Canada is poised to start exports to Asia<\/a><\/p>\n<p class=\"c-article-body__text text-pr-5\">The B.C. regulator previously led a wide-ranging review of Cedar in collaboration with the Impact Assessment Agency of Canada. The project won approvals in 2023 from the provincial and federal environmental regulators.<\/p>\n<p class=\"c-article-body__text text-pr-5\">\u201cBenefits of increased liquefaction capacity and throughput are economic in nature and include the ability to achieve a higher rate of return on the investment in the project,\u201d Cedar said.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Other benefits cited in the regulatory filing include \u201cbetter utilization of underutilized pipeline infrastructure; an increased diversity of markets for Western Canada natural gas; additional economic benefits to Haisla Nation; additional tax revenue for provincial and federal governments.\u201d<\/p>\n<p class=\"c-article-body__text text-pr-5\">Under the revised proposal, liquefaction capacity would jump to 3.75 million tonnes a year of LNG, compared with the current approved amount of three million tonnes annually.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Along the pipeline for transporting natural gas, that works out to roughly 500 million cubic feet a day, compared with the current plans for 400 million cubic feet a day, said the filing by Cedar, which retained engineering expertise from Stantec Consulting Ltd.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The contentious Coastal GasLink pipeline, operated by TC Energy Corp., is currently supplying the LNG Canada megaproject in Kitimat and also will be used for Cedar.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Shell PLC-led LNG Canada became the country\u2019s first export terminal for the fuel when it began shipments in June to Asia from Kitimat. LNG Canada is mulling a Phase 2 expansion that would double capacity to 28 million tonnes a year.<\/p>\n<p class=\"c-article-body__text mv-16 l-inset text-pb-8\" data-sophi-feature=\"interstitial\"><a href=\"https:\/\/www.theglobeandmail.com\/business\/article-political-support-for-lng-gaining-traction-in-canada-indigenous-leader\/\" rel=\"nofollow noopener\" target=\"_blank\">Political support for LNG gaining traction in Canada, Indigenous leader says<\/a><\/p>\n<p class=\"c-article-body__text text-pr-5\">Coastal GasLink is building the new Mount Bracey compressor station in northeastern B.C. to supply Cedar, expanding capacity of natural gas on the existing pipeline by 400 million cubic feet a day.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The pipeline route starts in the Montney region in the province\u2019s northeast and runs 670 kilometres to Kitimat.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Last year, Haisla members voted overwhelmingly in favour of plans by the band council to borrow up to $1.4-billion from the First Nations Finance Authority to help support Cedar. In mid-2024, Export Development Canada provided a commercial loan facility of $400-million to $500-million to the project. <\/p>\n<p class=\"c-article-body__text text-pr-5\">Climate activists and environmental think tanks say the world needs to focus on renewable energy, not on fossil fuels such as LNG.<\/p>\n<p class=\"c-article-body__text text-pr-5\">\u201cRather than fostering economic growth in clean industries or helping communities adapt to climate change, limited public funds are being used to reinforce fossil-fuel extraction and consumption,\u201d the International Institute for Sustainable Development said in a report last week that criticized governments\u2019 funding for B.C.\u2019s fledgling LNG sector.<\/p>\n<p class=\"c-article-body__text text-pr-5\">A floating production unit is being built in South Korea for Cedar, which is constructing various other infrastructure in Kitimat. The project will use electricity from BC Hydro for powering electric motors that drive compressors for the liquefaction process.<\/p>\n<p class=\"c-article-body__text text-pr-5\">\u201cThe project will deliver a substantive and long-term revenue source for Haisla Nation, surrounding Indigenous nations, and the provincial and national economies,\u201d Cedar said in its regulatory submission. \u201cIt will have one of the lowest carbon footprints of any LNG facility when it begins operations in late 2028.\u201d<\/p>\n<p class=\"c-article-body__text mv-16 l-inset text-pb-8\" data-sophi-feature=\"interstitial\"><a href=\"https:\/\/www.theglobeandmail.com\/business\/article-petronas-mulls-lng-canada-expansion-as-competition-looms-from-alaska\/\" rel=\"nofollow noopener\" target=\"_blank\">Petronas mulls LNG Canada expansion as competition looms from Alaska<\/a><\/p>\n<p class=\"c-article-body__text text-pr-5\">Cedar has estimated that its export facilities will require US$3.4-billion in capital spending and US$600-million in other expenses, including interest paid through financing arrangements during construction, as well as transaction costs.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The venture, co-owned by the Haisla and Pembina since 2021, also applied to house up to 80 workers on the floating production vessel. \u201cIt is important to note that more than 50 per cent of Cedar LNG\u2019s permanent employees will not be living aboard the vessel,\u201d Pembina said in an e-mailed statement.<\/p>\n<p class=\"c-article-body__text text-pr-5\">It cost $14.5-billion to construct Coastal GasLink. Industry experts say that if LNG Canada decides to forge ahead with Phase 2, it could cost billions of dollars more to add six compressor stations to more than double capacity along the existing pipeline to five billion cubic feet a day.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Calgary-based ARC Resources Ltd. has agreed to be a major supplier of natural gas for Cedar, with a 20-year commitment.<\/p>\n<p class=\"c-article-body__text text-pr-5\">The other LNG project currently under construction in B.C. is Woodfibre LNG, located at an industrial site near Squamish.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Energy proposals in B.C. include Ksi Lisims LNG on Pearse Island, FortisBC\u2019s expansion plans at its domestic Tilbury LNG site in Delta and Summit Lake PG LNG near Prince George.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Calgary-based Enbridge Inc. acquired a 30-per-cent stake in 2022 in Woodfibre, while the remaining 70 per cent is held by Pacific Energy Corp. Ltd.<\/p>\n<p class=\"c-article-body__text text-pr-5\">Woodfibre, which anticipates that it will start exports by late 2027, recently announced total estimated costs of US$8.8-billion that include construction of FortisBC\u2019s Eagle Mountain-Woodfibre Gas Pipeline.<\/p>\n<p class=\"c-article-body__text text-pr-5\">In 2016, Woodfibre had cost estimates of $1.6-billion for its Squamish-area terminal and $520-million for the associated pipeline. In 2022, Enbridge said total estimated costs had soared to US$5.1-billion.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: The Cedar LNG project, the first Indigenous majority-owned LNG facility in the world,&hellip;\n","protected":false},"author":2,"featured_media":161001,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-161000","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/161000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=161000"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/161000\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/161001"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=161000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=161000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=161000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}