Cedar LNG announces positive final investment decision (FID) on Cedar LNG Project, a landmark US$3.4B initiative

On June 25, 2024, Cedar LNG announced a positive final investment decision on the Cedar LNG Project, a floating liquefied natural gas facility located in the traditional territory of the Haisla Nation, on Canada’s West Coast. This project, valued at approximately US$3.4B with a nameplate capacity of 3.3 million tonnes per annum, is developed in partnership between the Haisla Nation and Pembina Pipeline Corporation. It is the largest majority Indigenous-owned infrastructure project in Canada and the world’s first Indigenous majority-owned LNG project. Strategically positioned to leverage Canadian natural gas supply, Cedar LNG is set to produce low-carbon, cost-competitive LNG for global markets.  

The project is being funded with asset-level debt financing for approximately 60% of the project cost. The remaining approximately 40% of the costs of the project is being financed through equity contributions from both partners. The Haisla Nation have obtained committed capital through the First Nations Finance Authority to fund their 20% equity contribution to the project.

The First Nations Finance Authority is a not-for-profit First Nation institution that plays a crucial role in the social and economic development of First Nations across Canada by providing qualifying First Nations with access to the capital markets at competitive rates.

Osler, Hoskin & Harcourt LLP advised the First Nations Finance Authority with a team consisting of Martha Martindale (Financial Services), Trevor Scott (Corporate), Simon Baines (Energy), Tony Basu (Financial Services), Bavia Bisetty (Real Estate) and Lucas Hodgson.