The Cedar LNG project, which is proposed to be developed by the Haisla Nation and Pembina Pipeline in British Columbia (BC), Canada, has secured provincial environmental approval from the BC government.

An environmental assessment certificate (EAC) was issued to the floating liquefied natural gas (FLNG) project by the BC Environmental Assessment Office. The certificate was released after a joint decision by provincial ministers.

Cedar LNG is proposed to be built on Haisla Nation-owned land in Kitimat. It is designed to have a capacity to export three million tonnes per year (Mtpa) of LNG.

The BC Environmental Assessment Office stated: “The ministers acknowledge that the project takes all possible measures currently available to reduce greenhouse gas emissions to the lowest feasible level.

“With the requirement to implement a greenhouse gas emissions reduction plan, combined with regulations that are under development by government regarding oil-and-gas-sector emissions, they concluded that the project can fit within B.C.’s climate targets and goals.”

Cedar LNG Partners, the project holding company, will have to still obtain any necessary federal approvals and provincial permits and authorisations before starting construction. The project company is majority-owned by Haisla Nation.

The FLNG project also secured its first permit from the BC energy regulator for the 8.5km pipeline that will link it to the Coastal GasLink pipeline.

Haisla Nation Chief Councillor Crystal Smith said: “The receipt of our EAC is the culmination of more than a decade of work by the Haisla Nation and marks a significant milestone for the Cedar LNG project and the Haisla Nation’s journey towards economic self-determination.

“With Cedar LNG, we are setting a new standard of responsible and sustainable energy development. Together with our partner, Pembina, we are committed to advancing an LNG project that protects the environment, respects Haisla Nation values, and meets the highest standards of social and environmental responsibility.”

Haisla Nation and Pembina Pipeline have also announced the signing of a 20-year liquefaction services agreement with ARC Resources for the project.

A definitive agreement is in the process of getting finalised by the parties for 1.5Mtpa of LNG, which is equivalent to nearly 200 million standard cubic feet per day of natural gas.

A final investment decision (FID) for the Cedar LNG project is expected to be made in Q3 2023.