South Korea’s Samsung Heavy Industries and its design partner Black & Veatch of the US have been lined up to supply the newbuild floating liquefied natural gas facility for the 3 million tonnes per annum Cedar LNG project in British Columbia, Canada.

The Haisla Nation and Pembina Pipeline Corporation, partners in the proposed Cedar LNG project, confirmed they had signed a heads of agreement with Samsung Heavy Industries and Black & Veatch.

The HoA provides Cedar LNG, on an exclusive basis with the two contractors, secure access to shipyard capacity to meet Cedar LNG’s target commercial operations date. The parties expect to finalise a lump sum engineering, procurement and construction agreement in December. The contracting duo early last year won the front-end engineering and design contract for the greenfield liquefaction project.

The Cedar LNG partners are still targeting the final investment decision before the end of the year. However, given the complexity and sequencing of aligning the multiple work streams, which are required to facilitate project financing, project sanction might move into early 2024, they said.

Operational start-up is scheduled for 2027.

“This exclusive relationship with Samsung and Black & Veatch to lock in shipyard capacity for the construction of the Cedar LNG FLNG vessel is a major step forward for our project,” Cedar LNG chief executive Doug Arnell said.

“Through this agreement we are accessing world-class expertise in the construction and delivery of floating LNG production vessels, which, together with renewable power from the BC Hydro grid, will result in an environmentally leading, state-of-the-art facility for Cedar LNG, with one of the lowest carbon footprints in the world.”

Cedar LNG added this agreement builds further momentum for the project and follows receipt of all major regulatory approvals and the signing of a memorandum of understanding for a 20-year liquefaction services agreement with ARC Resources for the project’s total LNG capacity.

The Cedar LNG project is a partnership between the Haisla Nation and Pembina to develop an FLNG facility in Kitimat, British Columbia, within the traditional territory of the Haisla Nation.

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