BC Invests in Second Canadian LNG Terminal Amidst Environmental Concerns

The British Columbia government has agreed to invest CAD$200 million in the Cedar LNG project, a floating natural gas liquefaction plant and marine export terminal located near Kitimat. The project, jointly owned by the Haisla First Nation and Pembina Pipeline Corp, has an in-service date of late 2028 and will have the capacity to liquefy approximately 3.3 million tonnes of natural gas per year. The federal government has also agreed to contribute $200 million to the project, which is expected to cost an estimated $5.9 billion to build. The project will be powered by hydroelectricity, making it a low-emissions option for liquefied natural gas exports.

The British Columbia government has agreed to invest CAD$200 million in the Cedar LNG project, a floating natural gas liquefaction plant and marine export terminal located near Kitimat. The project, jointly owned by the Haisla First Nation and Pembina Pipeline Corp, has an in-service date of late 2028 and will have the capacity to liquefy approximately 3.3 million tonnes of natural gas per year [1]. The federal government has also agreed to contribute $200 million to the project, which is expected to cost an estimated $5.9 billion to build [1].

The Cedar LNG project aims to be a low-emissions option for liquefied natural gas exports. It will be powered by hydroelectricity, including from the recently completed Site C dam [1]. The project will be fed gas from the Coastal GasLink pipeline, with a new 8-kilometer-long pipeline spur connecting it to the main pipeline [1]. The plant will be among the lowest-emitting facilities of its kind, thanks to its electrification and use of clean energy sources [2].

The project is expected to create 500 jobs during the peak construction period and 100 full-time jobs once activated [2]. The British Columbia government's investment will go towards building a new 287-kilovolt transmission line, a new substation, new distribution lines, and nearshore electrification [2]. The project is part of Prime Minister Mark Carney's plan to fast-track major project reviews, aiming to make Canada an "energy superpower" [1].

The investment in Cedar LNG comes as Canada aims to increase its presence in the global liquefied natural gas (LNG) market. The project is expected to compete with other LNG projects, such as the Alaska LNG project proposed by the Trump administration [1]. The project's success will depend on its ability to secure contracts with Asian markets and other countries that rely on LNG for energy [1].

The investment in Cedar LNG is part of a broader trend of increased support for energy infrastructure projects in Canada. A recent poll by Environics Research found that 73 percent of Canadians support building new oil pipelines [1]. The project is expected to contribute to Canada's energy exports and help reduce global greenhouse gas emissions by replacing coal with cleaner fuel sources [1].

References:
[1] https://oilprice.com/Energy/Natural-Gas/Ottawa-and-BC-Bet-Big-on-Second-Canadian-LNG-Terminal.html
[2] https://globalnews.ca/news/11310169/cedar-lng-200-million-electrification/