Pembina Pipeline Corporation announced yesterday that its Cedar LNG project had received environmental approval from the British Columbia government, Reuters reported on March 14.

Cedar has also been granted its first permit from the province's energy regulator for an approximately 8.5-kilometer pipeline connecting the project to the Coastal GasLink pipeline.

According to a statement from Pembina Pipeline, the company has signed a memorandum of understanding (MoU) with oil and gas producer ARC Resources Ltd for 20-year liquefaction services. The two companies are currently finalizing a supply agreement for 1.5 million tonnes of LNG per annum (MTPA).

Cedar LNG, a joint venture between the indigenous group the Haisla Nation and Pembina Pipeline, is working to develop a floating LNG facility in Kitimat, British Columbia, with the capacity to export 3 MTPA of LNG.

The environmental approval and permits are critical steps forward for the Cedar LNG project, which has faced opposition from environmental groups and some local First Nations.