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GLNG: Cedar LNG takes positive FID

A positive final investment decision (FID) was announced by indigenous majority-owned Cedar LNG on June 25 for its 3.3mn tonne per year (tpy) floating LNG (FLNG) project located in British Columbia on the territory of the Haisla Nation.

The announcement marks a key step forward for the partnership between the Haisla Nation and Canadian firm Pembina Pipeline Corporation. Saddled with rising costs, the positive FID makes Cedar LNG the second Canadian LNG project to be granted approval after the flagship LNG Canada project, which secured financial backing in 2018.

Pre-FID groundwork in advance of the construction phase, such as rough grading activities and tree clearing, already commenced in May for the project, which has seen costs soar to $4bn, almost doubling from the initially expected $2.4bn.

Despite the rising costs, Cedar LNG together with the nearby 14mn tpy LNG Canada project, could shake up the LNG sector, given the ideal location of the two facilities in Kitimat, British Columbia, which gives them a short, direct shipping route to key Asian customers.