Government of Canada announces support for Cedar LNG

 Initiative is set to be the largest Indigenous majority-owned infrastructure project in Canada

OTTAWA, ON, March 21, 2025 /CNW/ - The Government of Canada understands the importance of diversifying Canada's export market opportunities, supporting Indigenous economic reconciliation objectives and ensuring development is aligned with our climate and environmental goals. Supporting large-scale innovative projects will position Canada for a cleaner and stronger economy—and when done thoughtfully and strategically, one that is competitive in a low-carbon world. The Cedar LNG Project will also connect Canada's natural resources sector to more export markets while creating more economic opportunities for Indigenous peoples and Canadians.

Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, on behalf of the Honourable Anita Anand, Minister of Innovation, Science and Industry, announced a contribution agreement under the Strategic Innovation Fund (SIF) of up to $200 million toward a $5.963 billion project with Cedar LNG Partners LP (Cedar LNG). This project will create approximately 300 full-time construction and trades jobs and 100 highly skilled jobs in Canada, with a strong focus on providing long term Indigenous employment opportunities. The project is expected to generate $275 million in gross domestic product (GDP) contributions over the construction phase and $85 million in annual GDP contributions during the operations phase.

Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline Corporation. This four–year project consists of the construction, commissioning and operation of a new Indigenous majority-owned floating liquefied natural gas (FLNG) processing facility and marine export terminal in Kitimat, British Columbia. The facility will be powered by clean hydroelectricity from B.C.'s grid and will produce ultra low-carbon LNG that has the potential to displace the use of higher-emitting forms of energy in Asia. Once operational, the facility will have the capacity to process and liquefy 400 million standard cubic feet of natural gas per day and produce 3.3 million tons of liquefied natural gas (LNG) per year for international markets.

The Cedar LNG Project is a model for Indigenous ownership in natural resource projects. Partnering with Indigenous peoples, communities and businesses is critical to building an inclusive, sustainable and resilient natural resource sector in Canada. Cedar LNG will create jobs, drive economic growth, diversify our export markets, and support global energy security and the transition away from higher-emitting energy sources. 

Quotes

"Canadian companies like Cedar LNG are turning ideas into solutions that Canada and the world need as we move toward a low-carbon future. Today's announcement shows how innovation can lead us toward sustainable economic growth as we work to achieve our climate objectives and support Indigenous communities."
– The Honourable Anita Anand, Minister of Innovation, Science and Industry

"The need to build a resilient economy with new export opportunities for Canadian energy suppliers has never been clearer. Our international partners are looking for a reliable supplier of low-carbon energy sources, and Canada will be there to enable communities—and in this case, Indigenous partners—to be the stable provider they are looking for, while creating good jobs and driving economic growth."
– The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources

"Cedar LNG is a reality today in part because of the incredible support we have received from the Government of Canada through the Strategic Innovation Fund. Haisla values of sustainability and environmental protection are core to how Cedar LNG has been designed, and it will result in one of the most innovative LNG facilities in North America, with one of the lowest carbon footprints in the world. Together with our partner Pembina, we are proud to be changing the face of the Canadian energy sector, in a manner that elevates Indigenous values of environmental and cultural protection."
– Crystal Smith, Chief Councilor of the Haisla Nation

"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. Together with our partner, the Haisla Nation—and with strong support from the Government of Canada—Cedar LNG will bring industry–leading, low-carbon, cost-competitive Canadian LNG to overseas markets, contributing to global energy security and creating jobs and economic growth, all while upholding the highest standards of social and environmental responsibility."
– Scott Burrows, President and Chief Executive Officer, Pembina Pipeline Corporation

Quick facts

• Cedar LNG is a Haisla Nation–led partnership. Haisla Nation (50.1% project ownership) is the government of the Haisla people, who reside on British Columbia's northwest coast. The other partner is Pembina Pipeline Corporation (49.9% ownership), a Calgary-based midstream service provider that has been serving North America's energy industry for 70 years.
• This project will deliver industry-leading, low-carbon, cost-competitive Canadian LNG to overseas markets and contribute to global energy security, while delivering jobs and economic prosperity to the region.
• Cedar will provide meaningful employment and economic prosperity to the region and aims to have the highest Indigenous employment on any major energy project in Canada during operations.
• Cedar LNG will use clean hydroelectricity from the BC Hydro grid to liquefy and deliver world –leading, low-emissions LNG to overseas markets. Engineering innovations, such as a –unique spread mooring system, enable the nearshore FLNG facility to minimize negative impacts on the local community and environment. The facility will further reduce its environmental impacts by implementing air-cooled process technology, the first FLNG facility in the world to do so.

Associated links

• Strategic Innovation Fund
• Cedar LNG

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SOURCE Innovation, Science and Economic Development Canada

Contacts: Myah Tomasi, Director of Communications, Office of the Minister of Innovation, Science and Industry, [e-mail], 343-543-7210; Media Relations: Innovation, Science and Economic Development Canada, [e-mail]