Project Spotlight: Cedar LNG Project
- Jul 16
- 3 min read
Cedar LNG is the world's first Indigenous majority-owned liquefied natural gas project. The facility is owned and being developed by Haisla Nation and Pembina Pipeline Corporation. The floating LNG facility is now under construction on British Columbia's Douglas Channel in Kitimat. Since reaching a positive Final Investment Decision in June 2024, the roughly $4 billion USD project has become the largest Indigenous majority-owned infrastructure project in Canada, financed in part by the largest loan the First Nations Finance Authority has ever issued.
Project Overview
Cedar LNG is a floating LNG facility located in Kitimat, B.C., in the traditional territory of the Haisla Nation, on the Douglas Channel — one of the shortest shipping routes from Canada to key Asian markets. The facility has a nameplate capacity of 3.3 million tonnes per annum, processing 400 million cubic feet per day of natural gas delivered via an approximately 8-km connector pipeline linking to the Coastal GasLink pipeline. It is being designed and constructed by Samsung Heavy Industries and Black & Veatch, and will be powered by renewable electricity from the BC Hydro grid, making it one of the lowest-emission-intensity LNG facilities in the world. The Haisla first secured capacity access on the Coastal GasLink pipeline in 2018; their formal partnership with Pembina was announced in June 2021, the project received its Environmental Assessment Certificate in March 2023, and a positive Final Investment Decision followed in June 2024. Cedar LNG has secured 20-year take-or-pay liquefaction tolling agreements with ARC Resources and Pembina, 1.5 mtpa each, and is expected to begin operations in late 2028.
Project Details
Location: Kitimat, British Columbia
Technology: Floating liquefied natural gas facility
Capacity: 3.3 mtpa
Status: Under construction with operations expected late 2028
Estimated Cost: ~$4 billion USD
Industry Partner: Pembina Pipeline Corporation (49.9%)
Indigenous Partner: Haisla Nation (50.1%)
Indigenous Ownership
The Haisla Nation holds 50.1% of Cedar LNG Partners LP making Cedar LNG the world's first Indigenous majority-owned LNG project. Despite the 50.1/49.9 economic split, the Cedar LNG board is evenly divided, with four Haisla directors and four Pembina directors. In a community ratification vote, approximately 93% of Haisla members voted in favour of the Nation borrowing to fund its equity contribution. Project leadership has since passed from the Chief who negotiated the original 2021 partnership to current Chief Councillor Maureen Nyce, reflecting institutional commitment to the deal across more than one term of Haisla leadership.
"Today, the Haisla Nation, with our partner Pembina, have made history as the world's first Indigenous community to develop an LNG facility as majority owners." Crystal Smith, Chief Councillor, Haisla Nation
Financial Details
Approximately 60% of project cost via asset-level debt (a construction term loan with a syndicate of banks), with the remaining 40% financed through equity contributions from both partners. The Haisla Nation's 20% equity contribution to total project cost is funded through a $1.4 billion loan from the First Nations Finance Authority. Pembina's equity contribution is expected to be funded from its own operating cash flow. Export Development Canada will provide a loan of between $400 - $500 million as part of a wider lending group. In March 2025, the federal government provided up to $200 million in support from the Strategic Innovation Fund. In July 2025, the Government of BC provided $200 million.
Why This Project Matters
A true equity majority. At 50.1%, the Haisla Nation's position is a genuine controlling interest, a meaningfully different category from most Indigenous energy deals IEM tracks with projects of this scale.
Indigenous-specific capital markets infrastructure at scale. The Haisla's $1.4 billion FNFA loan shows Indigenous-led financial institutions, not only federal or provincial loan guarantee programs, are now capable of funding a Nation's share of a multi-billion-dollar project.
Indigenous Energy Ownership Tracker
The Cedar LNG Project is one of the many Indigenous-owned energy assets tracked in IEM's Indigenous Energy Ownership Tracker (IEOT). It was built to centralize project ownership details, identify partnership models, and improve transparency across Canada's energy transition.
🔗 Explore the IEOT:
Comments