Energy industry-focused technology services provider Baker Hughes has secured a contract to provide electric-driven liquefaction technologies to Cedar LNG.
The order, confirmed in the first quarter of 2024, includes main refrigeration compressors, boil-off gas compressors and centrifugal pumps, all powered by renewable electricity.
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The Cedar LNG, a proposed floating liquefied natural gas (FLNG) facility in Kitimat, British Columbia, is a partnership between Haisla Nation and Pembina Pipeline.
Baker Hughes secured the liquefaction technologies supply contract from Black & Veatch.
The planned LNG plant is anticipated to be one of the lowest-carbon-intensity LNG facilities in the world as it will be powered by renewable electricity.
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Black & Veatch president of energy & process industries business Laszlo von Lazar 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.
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By GlobalData“This is an important aspect of near-term decarbonisation 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.”
Baker Hughes executive vice-president of industrial & energy technology Ganesh Ramaswamy said: “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.
“Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of carbon emissions from natural gas.”
Last week, Pembina Pipeline announced that the cost of the Cedar LNG project is now estimated at $3.4bn (C$4.61bn), up from around $2.4bn.
The total cost, factoring in interest during construction and transaction costs, is expected to reach approximately $4bn.
A final investment decision is anticipated by mid-2024.
In a related development, Pembina Pipeline also secured a 20-year natural gas supply agreement with ARC Resources.
The deal with ARC will ensure supply of approximately 200 million cubic feet per day of gas for Cedar LNG’s liquefaction process, starting in 2028.
