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Haisla Nation and Pembina approve Cedar LNG project

Project hailed as a benchmark for economic reconciliation
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Haisla Nation Chief Councillor Crystal Smith delivers a speech at a provincial government event announcing receipt of Cedar LNG’s environmental assessment certificate in March, 2023.

The Haisla Nation and Pembina Pipeline Corporation have given a green light for the Cedar LNG Project in Kitimat. The final investment decision (FID), announced on June 26, clears the last major hurdle for the construction of the $3.4 billion USD floating LNG facility.

With the Haisla Nation holding a 50.1 per cent majority ownership in the project, Chief Councillor Crystal Smith highlighted the historic nature of the decision. "Today, the Haisla Nation, with our partner Pembina, have made history as the world’s first Indigenous community to develop an LNG facility as majority owners," said Smith. "Because of our Nation’s determination and environmental leadership, Cedar LNG will make the most significant mark on economic reconciliation ever in our country.” She emphasized that the project demonstrates the ability of Indigenous communities to achieve economic independence and generational prosperity. “We have created a model for how sustainable energy development should be done, with Indigenous Nations as owners, balancing environmental interests with global demand for cleaner energy."

The project has already secured all major regulatory approvals and has an agreement with the Coastal GasLink Pipeline to deliver 400 million cubic feet of natural gas per day for liquefaction, translating to an export capacity of about 6 million tonnes of LNG per year. Cedar LNG estimates that the facility will be in service by late 2028.

“This is a historic moment, and we are proud to be moving forward with a project that will deliver industry-leading, low-carbon, cost-competitive Canadian LNG to overseas markets and contribute to global energy security, while delivering jobs and economic prosperity to the local region,” Scott Burrows, president and CEO of Pembina said.

The project will create about 500 jobs during peak construction and around 100 full-time positions during operation. 

The FID has garnered praise from both the energy sector and government officials. B.C. Premier David Eby described it as a show of confidence for investors in the provincial economy, while Prime Minister Justin Trudeau praised Chief Councillor Smith for her vision and perseverance. “Your project and the partnership behind it is a model for economic reconciliation in this country,” Trudeau said.

Environmentalists, however, have raised concerns about the emissions generated by the LNG industry through liquefaction, transportation, drilling and flaring of natural gas. In response, B.C.'s Minister of Energy, Mines, and Low Carbon Innovation, Josie Osborne, emphasized the province's approach of capping emissions in the oil and gas sector, reiterating that B.C. aims to reduce methane emissions by 45 per cent by 2025 and to achieve a 75 per cent reduction by 2030 through strengthened regulations.



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