Global liquefied natural gas (LNG) infrastructure solutions leader Black & Veatch has signed a “heads of” agreement (HOA) with Cedar LNG Partners LP and Samsung Heavy Industries (SHI) to secure capacity in SHI’s shipyard to support Cedar LNG’s targeted commercial startup in Kitimat, British Columbia.

As part of pursuing the project within the traditional territory of the Haisla Nation, the HOA also calls for the stakeholders to work together to exclusively advance the engineering, procurement and construction (EPC) agreement for the proposed floating LNG (FLNG) facility. All parties are working diligently to achieve a lump sum EPC agreement this month, with a final investment decision (FID) by Cedar LNG shortly after.

Cedar LNG is strategically positioned to leverage Canada’s abundant natural gas supply and British Columbia’s growing LNG infrastructure to produce industry-leading, low-carbon and cost-competitive LNG for overseas markets. This export facility will use a near-shore FLNG vessel utilizing Black & Veatch’s PRICO liquefaction technology integrated with the hull and LNG storage tanks. Black & Veatch will be responsible for complete topside design and equipment supply.

“As an industry leader in global FLNG solutions, Black & Veatch will draw on its deep experience and innovation in collaboratively helping make this important project a reality for the market,” said Laszlo von Lazar, president of Black & Veatch’s energy and process industries business. “As decarbonization efforts accelerate, this project offers another example of how the LNG industry is investing in innovation and technology to reduce its carbon footprint.”

“Through this agreement, we are accessing world-class expertise in the construction and delivery of FLNG production vessels," said Doug Arnell, Cedar LNG’s chief executive officer. “Together with renewable power from the BC Hydro grid, this will result in an environmentally leading, state-of-the-art facility for Cedar LNG, with one of the lowest carbon footprints in the world.”

This agreement builds further momentum for the project and follows receipt of all major regulatory approvals and the signing of memorandums of understanding (MOU) for long-term liquefaction services with investment-grade counterparties for the project’s total LNG capacity.

About Black & Veatch

Black & Veatch is a 100-percent employee-owned global engineering, procurement, consulting and construction company with a more than 100-year track record of innovation in sustainable infrastructure. Since 1915, we have helped our clients improve the lives of people around the world by addressing the resilience and reliability of our most important infrastructure assets. Follow us on www.bv.com and on social media.

About Cedar LNG

The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas facility in Kitimat, British Columbia, Canada, within the traditional territory of the Haisla Nation. Strategically positioned to leverage Canada’s abundant natural gas supply and BC’s LNG infrastructure, Cedar LNG will be powered by renewable electricity from BC Hydro, making it one of the lowest carbon intensity LNG facilities in the world.