Black & Veatch and Samsung Heavy Industries (SHI) are set to start construction on the Cedar LNG project, a floating liquefied natural gas (FLNG) project in Kitimat, British Columbia, Canada.

The duo, which holds the engineering, procurement, and construction (EPC) contract, was issued full notice to proceed from Cedar LNG LP partners, comprising the Haisla Nation and Pembina Pipeline.

To be built within the traditional territory of the Haisla Nation, the FLNG project will have a capacity to export three million tonnes per year (Mtpa) of LNG.

Black & Veatch will oversee the comprehensive topside design and equipment supply, leveraging its PRICO technology. On the other hand, Samsung Heavy Industries will deliver the hull with the containment system, in addition to handling the fabrication and integration of all topside modules.

Samsung Heavy Industries executive vice president and chief marketing officer SI Oh said: “Cedar FLNG has achieved another milestone of notice to proceed, solidifying an excellent partnership between SHI and Black & Veatch.

“Both of our firms continue to excel in FLNG market.”

During the peak of construction at the Cedar LNG project, a workforce of up to 500 individuals will be engaged. Once operational, approximately 100 personnel will maintain full-time positions at the facility.

The FLNG project has reached an advanced stage, securing major environmental approvals such as a British Columbia Environmental Assessment Certificate and a positive Decision Statement from the Canadian government.

A final investment decision (FID) on the project is anticipated to be made by the middle of this year. Its in-service date is projected to be in late 2028.

Cedar LNG will be the first indigenous majority-owned LNG project in the world. It will also be the first-ever FLNG to be electric-driven, powered by renewable energy sources.

Besides, it will be the first FLNG export facility in Canada. The project is expected to have low carbon intensity with renewable electricity powering essential components such as refrigeration compressors, boil-off gas compressors, and six centrifugal pumps.

Black & Veatch energy and process industries business president Laszlo von Lazar said: “Black & Veatch is committed to helping our clients and the communities they serve make meaningful progress on their decarbonisation journey.

“The Cedar LNG project represents important first steps toward reducing carbon emissions through lower-carbon LNG facilities, which can supply customers looking to move away from more carbon-intensive feedstocks.”