Cedar LNG is constructing a floating liquified natural gas (LNG) facility close to Kitimat, on BC’s northwest coast. The company’s final investment decision was announced in June 2024, and the facility is expected to be in service in late 2028.
Partners
Cedar LNG is a partnership between the Haisla Nation (50.1 percent), which owns the land on which the onshore facilities will sit, and Pembina Pipeline Corporation (49.9 percent).
Production
Cedar LNG’s liquefaction facilities will have a nameplate capacity of 3.3 million tonnes per year. There will be 108,000 tonnes of storage capacity onsite.
The floating liquefaction facility is under construction “overseas” (reported to be a USD1.5 billion project by Samsung Heavy Industries in South Korea).
The facility will receive 400 million cubic feet of natural gas per day from the Coastal GasLink pipeline, which also supplies gas to LNG Canada. TC Energy, who built the pipeline, announced in its second quarter 2024 report that the pipeline expansion to serve Cedar LNG would cost $1.2 billion.
Regulatory approvals
Cedar LNG applied to the BC Environmental Assessment Office for an Environmental Assessment Certificate in August 2019. The BC government announced that the certificate had been issued in March 2023. The federal government provided its approval at the same time.
Cedar LNG announced its final investment decision in June 2024.
Cost
The Cedar LNG facility is expected to cost US$4.0 billion.
The project is funded with approximately 40 percent debt from the partners and 60 percent debt financing.
Subsidy
The BC government announced in July 2025 that it will provide $200 million to enable Cedar LNG to build a new 287 kilovolt transmission line, substation and other infrastructure to allow the facility to use electricity from BC Hydro rather than gas. This adds to the “up to $200 million” announced by the federal government in March 2025.
Sales
Cedar LNG has secured 20-year take-or-pay contracts with ARC Resources Ltd. and Pembina Pipeline Corporation for 1.5 million tonnes per year each.
In November 2025, Pembina signed a 20-year agreement with PETRONAS for 1.0 million tonnes of Cedar LNG’s liquefaction capacity per year. Pembina expects to sell its remaining 0.5 million tonnes by the end of 2025.
Energy use
Cedar LNG has committed to its facility being powered by electricity from BC Hydro.
The Cedar LNG facility’s application to the BC Environmental Assessment Office had stated that it would “be powered by either connection to the provincial electricity transmission grid via a new 7 to 8 kilometre (km) long transmission line, through self-generation of power onsite using natural gas, or a combination of the two.”
Peak electricity demand is expected to be 215 megawatts. The BC Environmental Assessment Office’s report for Cedar LNG says Cedar LNG will require 1,461 gigawatt hours of electricity per year.
Emissions
A 2024 BC government document estimated that Cedar LNG’s carbon emissions would be 0.24 mega tonnes, or 0.08 CO2 equivalent / tonne.
Cedar LNG estimated that if it uses electricity for liquefaction, which now seems likely, it will generate 168,000 tonnes of CO2 equivalent per year. Based on production of 3.3 million tonnes of LNG per year, this works out at approximately 0.051 tonnes of CO2 equivalent per tonne of LNG.
If it used gas to generate its own electricity, it would have generated 840,000 tonnes of CO2 equivalent per year.