Public input requested for proposed tweaks to Canada’s $4B LNG project

Shortly after a liquified natural gas (LNG) project got picked to get millions in support from the Canadian government, the Impact Assessment Agency of Canada (IAAC) has set the wheels in motion to kick off a public comment period on proposed amendments to the decision statement for the project’s floating LNG (FLNG) processing facility and marine export terminal near Kitimat in British Columbia, Canada.

The government of Canada revealed on March 21, 2025, its support for Cedar LNG in the form of a contribution agreement under the Strategic Innovation Fund (SIF) of up to CAD 200 million ($139.8 million) toward a CAD 5.963 billion ($4.17 billion) project with Cedar LNG Partners LP (Cedar LNG). Innovation, Science and Economic Development Canada describes this as an initiative set to be the country’s largest Indigenous majority-owned infrastructure project.

When the Cedar LNG project was approved in 2023, the Minister of Environment and Climate Change issued a decision statement with legally binding conditions that Cedar LNG Partners have to comply with throughout the life of the project, including advising IAAC of proposed changes to the project that would have potential adverse effects within federal jurisdiction.

The project’s partners are proposing to expand the marine terminal area to encompass the mooring lines and anchors for the facility’s mooring system and add a new distribution powerline alongside the option of an alternate transmission line route, which would have a wider right of way.

While these things would not result in changes to the production or storage capacity of the LNG facility, IAAC has invited Indigenous Peoples and the public to review and provide feedback on the draft analysis of these proposed changes, which includes amendments to the decision statement.

As the project approval cannot be amended, this comment period is strictly for the proposed amendments to the decision statement. Comments need to be submitted by 11:59 p.m. on April 30, 2025. The Cedar LNG project entails the construction, commissioning, and operation of a new FLNG processing facility and marine export terminal in Kitimat, powered by clean hydroelectricity from British Columbia’s grid to produce ultra-low-carbon LNG.

Such LNG is believed to have the potential to displace the use of high-emitting forms of energy in Asia. This project is set to 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 per year for international markets.

Cedar LNG has experienced its fair share of issues already by running into opposition from climate change activists and facing legal challenges thanks to Steelhead LNG, which accused Cedar LNG and Samsung Heavy Industries of infringing its Korean patents.

The company embarked on a patent infringement litigation in Korea to seek a halt to the construction of FLNG facilities, damages for the alleged unauthorized use of its patents, and an injunction prohibiting further infringement.

Steelhead LNG followed this up with further legal proceedings against Cedar LNG, Pembina Pipeline Corporation, and ARC Resources in British Columbia, with the lawsuit filing alleging that each of the defendants “willfully and improperly exploited information” it supplied to ARC Resources.

A recent survey by KPMG concerning the ongoing trade war with the U.S. has found that 80% of Canadian energy and natural resources chief executive officers (CEOs) are confident they can withstand a sustained tariff war.

However, they are pressing for government action to eliminate interprovincial trade barriers and commit to building a national infrastructure backbone that will protect the country’s sovereignty and drive economic growth.

Doug Ewing, a partner in KPMG’s Global Infrastructure Advisory practice who leads the firm’s Major Project Advisory Services, points out that megaprojects are crucial to Canada’s economic development and infrastructure growth but require meticulous planning, robust governance, and effective stakeholder engagement.