Baker Hughes to Provide Cedar LNG with Electric-Driven Tech

Baker Hughes has secured an order from Black & Veatch to supply Cedar LNG with electric-driven liquefaction technologies.

Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas (LNG) facility in Kitimat, British Columbia, within the traditional territory of the Haisla Nation.

Baker Hughes will supply a range of turbomachinery equipment, including four electric-driven main refrigeration compressors, two electric-driven boil-off gas compressors and six centrifugal pumps, the company said in a news release Friday. The award was booked in the first quarter. The financial details were not disclosed.

“Black & Veatch is committed to helping our clients and the communities they serve make meaningful progress on their decarbonization journey,” Laszlo von Lazar, president of Black & Veatch’s Energy & Process Industries business, said. “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,” he added.

“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,” Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes, said. “Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of carbon emissions from natural gas”.

Cedar LNG in January selected Samsung Heavy Industries (SHI) and Black & Veatch to provide engineering, procurement and construction for the design, fabrication and delivery of the Cedar LNG Project’s floating liquefied natural gas (FLNG) production unit. Pembina in a recent statement said that Cedar LNG has issued a notice to proceed to the engineering, procurement, and construction (EPC) contractors to continue the design, fabrication and delivery of the project’s floating LNG production unit.

Cedar LNG has obtained a detailed Class III level capital cost estimate of approximately $3.4 billion, including $2.3 billion for the FLNG production unit, which is under a fixed-price, lump-sum agreement, and $1.1 billion related to onshore infrastructure, owner’s costs, commissioning and start-up costs, financial assurances during construction, and other costs. The total project cost, including $0.6 billion of interest during construction and transaction costs, is expected to be approximately $4.0 billion, Pembina noted.

Last week, Cedar LNG signed a long-term liquefaction tolling services agreement with ARC Resources Ltd. Under the agreement, ARC will deliver approximately 200 million cubic feet per day (MMcfpd) of natural gas for liquefaction for 20 years when commercial operation starts, which is anticipated in the second half of 2028, the company said in a news release Thursday.

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