Baker Hughes lands work on Canada’s Cedar LNG project

U.S. energy technology giant Baker Hughes has won a contract to supply Black & Veatch, a compatriot liquefied natural gas (LNG) infrastructure solutions company, with electric-driven liquefaction technology for Canada’s Cedar LNG project.

The U.S. technology player has been tasked with providing turbomachinery equipment, including four electric-driven main refrigeration compressors, two electric-driven boil-off gas compressors, and six centrifugal pumps, for Canada’s Cedar LNG, which will be powered by renewable electricity. As a result, it is believed that this will be one of the lowest carbon-intensity LNG facilities in the world.

Ganesh Ramaswamy, Executive Vice President of Industrial & Energy Technology at Baker Hughes, commented: “This award is the latest important milestone for Baker Hughes in the LNG market, demonstrating the strength of our portfolio and our commitment to collaborating with industry partners while providing efficient and lower carbon solutions for the natural gas market. Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of carbon emissions from natural gas.”

The Cedar LNG project is a partnership between the Canadian energy infrastructure company Pembina Pipeline and the Haisla Nation, which owns the territory in Kitamaat Village, at the head of the Douglas Channel in British Columbia, Canada, where the floating LNG (FLNG) facility will be located. Described as the first project allowing this Indigenous community to directly own and participate in a large industrial development in its territory, it is expected to provide economic and social benefits to its members.

Laszlo von Lazar, President of Black & Veatch’s Energy & Process Industries business, remarked: “Black & Veatch is committed to helping our clients and the communities they serve make meaningful progress on their decarbonization journey. The Cedar LNG project represents an important step toward reducing carbon emissions through lower-carbon LNG facilities that can supply customers looking to move away from more carbon intensive feedstocks.

“This is an important aspect of near-term decarbonization plans around the world, and Canada’s abundant natural gas supply means Cedar LNG is in a strong position to accelerate this phase of the energy transition. And our team is eager to take on this opportunity with our long-standing partner Baker Hughes.”

This project, which has an estimated annual capacity to export three million tons of LNG, has achieved several milestones this year. In January, Samsung Heavy Industries (SHI) and Black & Veatch were selected to provide engineering, procurement, and construction (EPC) for the design, fabrication, and delivery of the project’s FLNG unit. This week, the two companies received a notice to proceed (NTP), allowing them to start finalizing engineering and design and begin construction of Cedar LNG’s FLNG.

In March, environmental approval was received from the British Columbia Energy Regulator for the pipeline to connect the project to the Coastal GasLink pipeline. A memorandum of understanding (MoU) was also signed with ARC Resources for a 20-year services agreement, which entails supplying and liquefying approximately 200 million standard cubic feet per day (MMcf/day) of natural gas to the project.

The final investment decision (FID) has been pushed back several times, first to 4Q 2023 and now to mid-2024. Subject to the FID being made, onshore construction work should start in 2Q 2024, while the delivery of the FLNG and project completion are anticipated in 2028.