Image:Cedar LNG
The Canadian government is backing the country’s largest Indigenous majority-owned infrastructure initiative, committing up to $200 million to the $5.963 billion Cedar LNG project in British Columbia.
The announcement was made by Jonathan Wilkinson, Minister of Energy and Natural Resources, representing Anita Anand, Minister of Innovation, Science and Industry. The investment, sourced through the Strategic Innovation Fund (SIF), highlights a deliberate effort to support Indigenous economic participation while pushing toward low-carbon energy exports.
The project is being spearheaded by Cedar LNG Partners LP, a joint venture between the Haisla Nation, holding 50.1% ownership, and Pembina Pipeline Corporation, owning the remaining 49.9%. The facility, located in Kitimat, BC, will consist of a floating liquefied natural gas (FLNG) terminal powered entirely by hydroelectricity from the provincial grid.
The initiative aims to liquefy 400 million standard cubic feet of natural gas per day, translating into 3.3 million tonnes of LNG annually. This supply is targeted for international markets, particularly in Asia, where demand for cleaner energy alternatives remains high. By using hydro power and air-cooled process technology—the first of its kind on a floating LNG platform—Cedar LNG intends to minimize environmental impacts while operating at one of the lowest carbon intensities in the global LNG sector.
According to federal estimates, the project will generate approximately 300 full-time construction and trades jobs during its build-out, followed by 100 skilled positions during operations. There’s a stated priority to ensure long-term Indigenous employment, making it one of the most inclusive energy infrastructure efforts in Canadian history.
“This is about enabling communities—and in this case, Indigenous partners—to be the stable provider international markets are looking for,” said Jonathan Wilkinson, underscoring the growing need for dependable, low-carbon energy sources in a geopolitically uncertain world.
For Crystal Smith, Chief Councilor of the Haisla Nation, the facility reflects a broader commitment to sustainability. “Haisla values of sustainability and environmental protection are core to how Cedar LNG has been designed,” she said, adding that the support from the Canadian government has been instrumental.
Scott Burrows, CEO of Pembina Pipeline Corporation, emphasized collaboration as a key factor: “Cedar LNG is a powerful example of how industry, Indigenous nations and governments can work together to deliver much-needed Canadian energy to the world.”
Cedar LNG’s floating infrastructure includes engineering elements like a spread mooring system that reduces its environmental footprint, making it less intrusive to coastal ecosystems. This, paired with electrification through clean energy sources, makes it a standout in North American LNG development.
The project is expected to contribute $275 million in GDP during construction and $85 million annually once operational. It represents not just a shift in how energy is exported from Canada but who benefits from it—providing a template for future Indigenous-led developments in the sector.
Source:Government of Canada
