Canada’s Cedar LNG gets approval to increase future production capacity

Cedar LNG has received approval from British Columbia’s environmental regulator to raise its future production capacity, Canadian media The Globe and Mail reported on July 15.

The project, which is a joint venture between the Haisla Nation and Calgary-headquartered Pembina Pipeline Corporation, has been granted approval by the provincial environmental regulator to increase capacity by 25%.

Cedar LNG took a positive FID on its first floating export terminal with a production capacity of 3 mn tonnes per year (tpy) in June 2024. It is expected to come online in 2028. Now, the facility located on the traditional territory of the Haisla Nation in Kitimat, British Columbia about 700 km north of Vancouver, will be able to produce up to 3.75 mn tpy.

Earlier in July, Canada and British Columbia inked a cooperation agreement to speed up development of four large LNG projects, including Cedar LNG and LNG Canada Phase 2, which is also located in Kitimat.

Fast-tracking Cedar LNG’s development has been high on Ottawa’s agenda with the federal government also providing a contribution of $200 mn to the project in May 2025.

Cedar LNG will draw on gas from the Montney shale formation located in northeastern British Columbia.

A 670 km pipeline will transport the natural gas to Cedar LNG and LNG Canada. With Cedar’s increased production capacity, the facility will now receive about 500 mn cubic feet (14.2 cubic metres) of gas per day. Before the expansion announcement it was set to receive 400 mn cubic feet (11.3 mn cubic metres) per day.

Cedar LNG has already secured a handful of customers. In December, US petroleum company Ovintiv agreed to buy 0.5mn tpy of liquefaction capacity beginning in 2028 for 12 years.

Additionally, in November a 20-year offtake deal was inked with Malaysian state-run energy company Petronas for the purchase of 1mn tpy of the super-chilled fuel.