Interesting news and developments in LNG for North West BC just before the end of the year. There is no issues with the Coastal Gas Pipeline and LNG Canada as it appears this project will come together and operate on time. From contacts and sources in Terrace and Kitimat it appears that Cedar LNG has officially secured the pipeline space in the current pipeline of Pacific Northern Gas (PNG) that runs from Summit Lake, near Prince George to Prince Rupert/Kitimat.
PNG pipeline serves all communities along Hwy 16 as the pipeline runs north of the highway to Prince Rupert with a arm going south from Terrace to Kitimat. The pipeline now is only operating at 30% since Methanex shut down in Kitimat in November 2005. PNG is eventually hoping to loop or twin the pipeline on the south side of Hwy 16 to Kitimat. So PNG, which is now owned by TriSummit Utilities was looking for a customer to fill the rest of the line. PNG was in conversation with a number of proponents lately including Port Edward LNG, KSI Lisims LNG, Trigon Terminals and Cedar LNG. It appears that they have chosen a short term winner
Cedar LNG appears to have secured the pipeline for 1-2 years for their project. Onsite work in Kitimat and their floating barge (used to be owned by Alta Gas, TriSummit parent company) will start in early 2024. This project gets to fill the empty 70% of the PNG pipeline. So that means the other proponents will be dead, hope that
1)Cedar doesn’t get built – not likely
2) Another new pipeline gets built – no chance
3)PNG builds a loop or twin – very very good chance
The best bet is that PNG builds a new twin or loop in 3-4 years as it will take that long for the Cedar project to get built and operating. PNG surveyed and planned a southern route 8 years ago when the first wave of LNG excitement graced the North Coast in 2014. There was a total of 5 pipelines originally proposed for all the 18 different LNG projects in the area
For the time being it appears that Cedar LNG is moving ahead
