B.C. government approves $3B First Nation-owned Cedar LNG project, bringing it one step closer to reality

The $3-billion Cedar liquefied natural gas facility (LNG) proposed by the Haisla Nation in partnership with Pembina Pipeline Corporation has been issued an environmental assessment certificate by the provincial government, bringing construction of the floating facility in Kitimat, B.C., one step closer to reality.

Premier David Eby said it is the largest First Nations-owned infrastructure project in the country, will employ 500 people during construction and support 100 full-time jobs once operational.

"It will provide unprecedented economic opportunity for both the Haisla Nation and for the region. It will create good new jobs," said Eby. 

Cedar LNG has an estimated construction cost of more than $3 billion. Located in the province's northwest, about 630 kilometres west of Prince George, the project consists of a floating natural gas liquefaction plant and marine export terminal located in the Douglas Channel.

While the plant itself will be powered by hydroelectricity, the natural gas will be fed in for liquefying via an eight kilometre-long pipeline spur connected to the main Coastal GasLink pipeline, which is currently under construction.

Haisla chief councillor Crystal Smith said the granting of the environmental certificate shows support for economic reconciliation and paves the way for her nation to take control of its future. 

"...We are demonstrating how we can responsibly advance LNG development in our province while protecting the environment," she said. 

The NDP government says allowing a large greenhouse gas-producing development like Cedar LNG is not in conflict with its professed goals of protecting the environment and fighting climate change.

"We have concluded that this project can fit within B.C.'s climate targets and goal," said George Heyman, minister of environment and climate change strategy. "We will work across all sectors to protect the environment and address climate change while steadily reducing our emissions." 

Heyman said Cedar LNG has 16 legally binding conditions, including a requirement to develop a GHG (greenhouse gas) reduction plan.

Once up and running, Cedar LNG will have the capacity to liquefy approximately three million tonnes of LNG per year for export to Asian markets. 

B.C.'s Environmental Assessment Office conducted the assessment on behalf of the province and federal government under a "substitution agreement," allowing each level of government to decide on the project based on a single assessment. 

The federal decision on Cedar LNG is pending.