CALGARY – RBC Capital Markets says it expects to see a green light from the partners behind the proposed US$3.4-billion Cedar LNG project.
RBC analyst Robert Kwan said in a note Friday he expects Pembina Pipeline Corp. and its project partner, the Haisla Nation of B.C., to pull the trigger on the floating liquefied natural gas facility they have proposed to build in Kitimat, B.C. in a positive final investment decision.
On Thursday, Pembina announced it has signed a long-term natural gas supply agreement for the facility with ARC Resources Ltd., a Calgary-headquartered company that has natural gas drilling operations in the Montney region of northeast B.C. and northwest Alberta.
Pembina also said it has issued a formal “notice to proceed” to its contractors for the engineering, procurement and construction of the LNG production unit.
Cedar LNG, which would produce liquefied natural gas for export to Asian markets, would be owned by the Haisla, making it the largest Indigenous-owned infrastructure project in the country.
Pembina said Thursday it expects to make its final investment decision by the middle of this year.
This report by The Canadian Press was first published April 5, 2024.
Companies in this story: (TSX:PPL; TSX:ARX)
