Federal payout for Cedar LNG: putting the taxpayer on the hook for climate change

səl̓ílwətaʔɬ (Tsleil-Waututh), xʷməθkwəy̓əm (Musqueam), and Skwxwú7mesh (Squamish) territories (VANCOUVER, B.C.)  –  Earlier today, Jonathan Wilkinson, Minister of Energy and Natural Resources and Anita Anand, Minister of Innovation, Science and Industry announced that the Government of Canada would contribute $200 million in direct subsidies to the Cedar LNG terminal. This is in addition to the $500 million in federal loan guarantees that the project received in June 2024. Cedar LNG is a proposed floating export facility on B.C.’s north coast and is a joint venture of the  Haisla Nation and Pembina Pipelines.

 “Any government still using public dollars to create new fossil fuel subsides in 2025 is making it clear that Big Oil profits still come before the needs of regular people and the fight against climate change,” said Sven Biggs Canadian Oil and Gas Program Director for Stand.earth “At a time when our economy is under threat and so many are struggling to make ends meet, it is obscene to be handing out multi-million dollar giveaways to billion dollar corporations like Pembina Pipelines and ARC Resources, the fracking company that will supply the gas for this project.’

Last March Energy and Natural Resources Minister Jonathan Wilkinson went on record saying Canada was not interested in subsidizing liquefied natural gas (LNG) projects, including electrification of projects currently in the works – today’s announcement marks a reversal. Additionally, Canada and other G7 Nations have agreed to eliminate fossil fuel subsidies by 2025, today’s announcement clearly breaks that agreement.

“A hydro-powered LNG facility is still very much a fossil fuel project” said Kiki Wood, Senior Campaigner for Stand.earth. “What you don’t see is the massive increase in upstream emissions from fracking in B.C.’s northeast to supply the export facility with gas. The International Energy Agency has been clear that we cannot continue to expand oil and gas infrastructure – let alone bankroll it.” 

Cedar LNG was one of the projects allowed to circumvent due process of B.C’s environmental regulations last month in a recent wave of reactionary measures to Trump’s tariff threats. The facility proposes to power its operations using electricity produced by the new Site C dam, despite assurances the controversial and over-budget dam wouldn’t be used to facilitate new oil and gas expansion in B.C.. Construction costs for Cedar LNG have also risen dramatically to $5.9 billion today, almost double from $3 billion when it was first announced..

While often touted as an example for economic reconciliation with Indigenous Nations, the International Energy Agency 2024 World Energy Outlook said no new LNG projects are needed to meet global demand, making LNG export projects like Cedar extremely risky investments for governments and industry. A recent Carbon Tracker Report from October 2024 found that the Cedar LNG project would not be viable under any plan to keep global warming below 2.2C, not to mention the role it will play in causing B.C. to surpass its own increasingly out of reach climate targets.

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Media Contacts

Sven Biggs, Canadian Oil and Gas Programs Director – Stand.earth +1 778-882-8354

sven@stand.earth (Pacific Time)

Kiki Wood, Senior Oil and Gas campaigner – Stand.earth +1 604-367-1865

kiki@stand.earth (Pacific Time)

Arin de Hoog, Communications, Oil, Gas and Shipping – Stand.earth. +1 613-978-7329

arin.dehoog@stand.earth (Eastern Time)