On June 25, 2024, the Haisla Nation and Pembina Pipeline Corporation announced a positive final investment decision for Cedar LNG—a $4 billion floating liquefied natural gas facility in Kitimat, British Columbia. The announcement marked more than a business milestone. It represented a fundamental shift in how Indigenous communities participate in Canadian resource development.
Cedar LNG is the world's first Indigenous majority-owned LNG facility. The Haisla Nation holds 50.1% ownership, with Pembina Pipeline holding the remaining 49.9%. This structure ensures that decision-making power rests with the Indigenous community—a reversal of the traditional model where communities negotiate benefits from projects controlled by external developers.
"Today, the Haisla Nation, with our partner Pembina, have made history as the world's first Indigenous community to develop an LNG facility as majority owners," said Chief Councillor Crystal Smith at the FID announcement. Prime Minister Justin Trudeau characterized the project as "a model for economic reconciliation in this country."
Project Specifications
Cedar LNG will be a floating LNG facility—an innovative approach that reduces onshore construction requirements and environmental footprint. The facility will process 3.3 million tonnes of natural gas per annum, sourced from the Coastal GasLink pipeline via an 8.5-kilometer connecting pipeline.
Key technical details:
- Capacity: 3.3 million tonnes per annum (MTPA)
- Technology: Floating LNG vessel using patented PRICO liquefaction process
- Power source: 100% BC Hydro renewable electricity
- EPC contractors: Samsung Heavy Industries and Black & Veatch
- Expected commercial operations: Late 2028
The decision to power the facility with renewable electricity positions Cedar LNG as one of the world's lowest-emission LNG facilities—a significant competitive advantage as Asian buyers increasingly prioritize carbon credentials.
The Economics of Indigenous Ownership
The 50.1% ownership stake provides the Haisla Nation with direct participation in project equity and cash flows over a 40+ year operational horizon. This represents generational wealth creation on a scale rarely available to Indigenous communities.
The economic model extends beyond ownership dividends:
Employment: Up to 500 construction jobs and approximately 100 permanent operational positions, with priority for local and Indigenous workers.
Community investment: Project revenues are funding critical infrastructure including a new apartment complex and a health center with traditional healing space—the first such facility in the community.
Regional development: The Government of British Columbia committed $200 million in December 2025 to fund renewable energy infrastructure supporting the facility.
The federal government provided $200 million through the Strategic Innovation Fund, characterizing Cedar LNG as an "innovative majority Indigenous-owned natural resource project."
Offtake Agreements and Market Position
Cedar LNG has secured long-term contracts covering most of its capacity:
- ExxonMobil: 1.5 MTPA under long-term agreement
- Petronas: 1.0 million tonnes per year under 20-year liquefaction tolling agreement
- ARC Resources: 1.5 MTPA under 20-year take-or-pay tolling agreement
These commitments from major energy companies demonstrate private sector confidence in the project and the Indigenous partnership model. Pembina has indicated "significant interest" in the remaining uncontracted capacity, with discussions about potential expansion (Cedar 2) already underway.
Construction Progress
Construction is proceeding on schedule following the June 2024 FID:
- Marine terminal and pipeline: Construction began Q2 2025
- Pipeline progress: All horizontal directional drill crossings completed ahead of schedule
- Floating vessel: Under construction overseas, scheduled delivery to Kitimat in 2028
- Budget status: US$4 billion gross capital cost, with approximately 70% under fixed-price agreements reducing cost risk
The financing structure—approximately 60% asset-level debt with the remainder from partner equity—reflects the project's commercial strength and de-risked capital structure.
A Replicable Model?
Cedar LNG's significance extends beyond its own commercial success. The project demonstrates that Indigenous communities can develop, own, and benefit from major energy infrastructure—not merely provide consent or receive compensation.
Several factors enabled this outcome:
Haisla Initiative: The Haisla Nation approached the project as developers, inviting Pembina to participate as a partner rather than responding to an external proposal.
Existing Relationships: The Haisla's negotiated access to Coastal GasLink pipeline capacity—secured during LNG Canada discussions—provided the foundation for an independent LNG project.
Federal Policy Support: Government funding and fast-track designation reflect policy commitment to Indigenous economic leadership in the energy sector.
Private Sector Alignment: Pembina's willingness to accept minority ownership demonstrates that Indigenous majority structures can work commercially.
The question now is whether other communities and developers will replicate this model. The First Nations LNG Alliance has been advocating for similar structures, and the 38 BC First Nations that acquired minority ownership in Enbridge's Westcoast pipeline suggest growing appetite for equity participation.
Navigating the Politics
Cedar LNG operates in politically complex terrain. The project has attracted support from federal and provincial governments, major energy companies, and investors seeking Indigenous partnership models. But it also faces criticism from environmental organizations and some Indigenous voices who oppose fossil fuel development.
The Haisla Nation has been direct in articulating its position: energy development provides the economic foundation for community self-determination. Chief Councillor Smith has emphasized that Cedar LNG revenues will fund housing, healthcare, and infrastructure that government programs have failed to provide.
This framing—Indigenous economic sovereignty through resource development—challenges narratives that position Indigenous communities as natural opponents of energy projects. The reality is more complex: Indigenous perspectives on resource development vary significantly across communities, and the Haisla's approach represents one legitimate path among many.
For businesses engaging with Indigenous communities on resource projects, Cedar LNG offers several lessons:
Genuine Partnership: The 50.1% structure isn't symbolic—it reflects actual governance authority. Meaningful Indigenous participation requires more than advisory roles or benefit agreements.
Long-Term Alignment: The 40+ year operational horizon aligns community and corporate interests across generations. Short-term extraction models create different incentive structures.
Capacity Building: The Haisla negotiated from strength because they had developed technical and commercial expertise over years of engagement with LNG Canada and other projects.
The Path to 2028
Cedar LNG is on track for commercial operations in late 2028. The project will contribute approximately $275 million in GDP during construction and $85 million annually during operations.
More significantly, it will test whether Indigenous majority ownership can succeed commercially at scale. If Cedar LNG delivers on schedule and budget while generating returns for both the Haisla Nation and Pembina, the model will attract replication. If it encounters the cost overruns and delays that have plagued other Canadian energy projects, critics will question whether the structure adds complexity without commensurate benefit.
The stakes extend beyond one project. Cedar LNG represents an experiment in whether reconciliation and resource development can be aligned—whether Indigenous communities can be partners in, rather than obstacles to, Canadian energy infrastructure.
At SHIFT, we help energy companies develop authentic Indigenous partnership communications. Cedar LNG demonstrates that the most effective Indigenous engagement isn't about managing opposition—it's about structuring projects so communities have genuine reasons to support them. That's a different communications challenge, and one that more Canadian energy projects will need to address.