06:07 PM EDT, 04/04/2024 (MT Newswires) -- Pembina Pipeline ( PBA ) said Thursday it has secured a long-term commercial offtake support for its Cedar LNG project in British Columbia and has issued a notice to proceed to its engineering, procurement and construction partners Samsung Heavy Industries and Black & Veatch.

The company said it signed a 20-year take-or-pay liquefaction tolling services agreement with a fixed toll with ARC Resources for 1.5 million metric tons per annum. It also executed an identical bridging agreement with Cedar LNG and is holding commercial offtake discussions with multiple other customers.

"These critical milestones allow Cedar LNG to initiate the project financing process and the Haisla Nation to commence a process to support its equity contributions in advance of a final investment decision, expected by the middle of 2024," Pembina said.

It said the capital cost estimate for the floating LNG facility is about $3.4 billion.