(Bloomberg) — Pembina Pipeline Corp. plans to make a final investment decision on its planned Cedar LNG floating natural gas export project in British Columbia within two weeks, according to people familiar with the matter.
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The $4 billion project will be funded 60 percent with debt and 40 percent with equity, with partners Haisla Nation and Pembina each contributing 20 percent of equity, Cedar LNG said in an emailed statement to Bloomberg News.
The loan also includes a C$1.5 billion ($1.09 billion) five-year loan for a pipeline linking the Cedar terminal to the nearby Shell-led Kitimat project, the people said.
Cedar LNG will be the second Canadian fuel export project to be financially approved since backers of the Shell-led C$40 billion LNG Canada decided to invest in it in 2018.
At least 15 banks are expected to participate in financing the project, the people said. Cedar LNG declined to comment on how many banks are involved or when it might finalize its investment when asked by Bloomberg News.
The project’s developers, which include the Haisla First Nation, have previously said they aim to make a final investment decision by mid-2024. Future liquefied natural gas production from the planned 3 million tonnes per year facility would be shared between Pembina and Canadian exploration company ARC Resources.
The latest LNG export facility to reach a final investment decision is Abu Dhabi National Oil Company’s Ruwais LNG project, announced on Wednesday.
–With assistance from Anna Shiryaevskaya.
(Updates with total project amount and capital breakdown from company in second paragraph.)
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