Cedar LNG delivered an extensive project update to Kitimat council on Oct. 20, but the meeting was slowed by a prolonged discussion over workforce accommodation, as councillors questioned the company’s plan to house the permanent operational staff onboard the floating LNG (FLNG) vessel.
The company said the onboard accommodation block — 40 rooms with 80 beds — is required during operations due to the regulatory standards that govern offshore marine facilities.
“A very unique part of Cedar LNG is that although we’re just 150 metres from shore, we are treated as though we’re in the middle of the North Sea — both in how we operate and the personnel that are qualified to work on this,” Amanda Zinter, lead BC regulatory for Cedar LNG said.
She added early operations will require specialized offshore-certified personnel, but the long-term goal is to use that initial workforce to train local residents. “We’re very incentivized to train local people,” she said, adding that a formal training program is in development.
Despite this, councillors raised strong objections to a perceived shift away from local housing. Councillor Mario Feldhoff, who has consistently opposed fly-in, fly-out models, said, “It’s abhorrent — the idea of people not living in the community during operations.” He said Kitimat has never zoned industrial areas for housing and stressed that permanent employees should be “raising families” in town.
Mayor Phil Germuth added that keeping workers on board the vessel would cut them off from the local economy. Referencing a slide from the presentation that stated the onboard facility would replicate familiar working environments for industry professionals, he said, “That pretty much screams fly-in, fly-out.”
He argued Kitimat has sufficient hotels and legacy work camps to accommodate temporary needs without isolating workers from the community, and he requested clarity on schedules, housing expectations, and the company’s overall approach.
Michael Eddy, director of external affairs for Cedar LNG, acknowledged the concern and said discussions with the District of Kitimat would continue.
“We will fail if we have only a fly-in, fly-out operation,” he said. “Our majority shareholder [Haisla Nation] does not want that either — absolutely not. Pembina does not want that either. So we need to dispel with the misunderstandings.”
He said the intent is for workers to live in Kitimat when not in rotation, and the company will structure schedules accordingly. “Even if you are accommodated on the vessel during your rotation, we would be encouraging you to live in the community, raising a family,” Eddy said.
Council was also reminded that the Haisla Nation is the majority owner of Cedar LNG, and that training and employment of Haisla members remains a top priority. Many of those workers will continue live in Kitamaat Village across the bay, and council should be cautious of conflating that with lost housing opportunities.
Cedar LNG is a floating liquefied natural gas (FLNG) facility located in the traditional territory of the Haisla Nation near Kitimat. Developed through a partnership between the Haisla Nation—who hold a majority stake—and Pembina Pipeline Corporation, the project will produce approximately 3.3 million tonnes per annum of LNG for overseas markets. Powered by renewable electricity from BC Hydro, Cedar LNG is designed to be among the lowest-carbon LNG facilities in the world.
At the time of the update to Kitimat council, the company reported 115 workers on site. Zinter said 90 per cent of the current onshore construction workforce is made up of Indigenous and local hires.
“That’s something we’re proud of supporting and will continue to support throughout construction and operations of the project,” she said.
Cedar LNG said it is actively engaged in recruitment efforts, including job fairs, to support the peak construction phase in 2026 and prepare for future operational needs.
However, questions were raised about consistency in applying local hiring commitments. Germuth referenced a recent incident in which local dump truck drivers were sent home while a subcontractor brought in workers from the Lower Mainland. Eddy confirmed the matter involved two local Indigenous firms but did not elaborate.
“But certainly, I take your point, and it’s something we continue to reinforce with all of our contractors and subcontractors,” he said.
A trade development program is now in early stages, with a dedicated team working alongside the Haisla community to build a pathway for local employment in trades such as power engineering, millwrighting, machining, HVAC, and refrigeration.
Eddy said the company has studied the challenges LNG Canada faced in local recruitment and training, and believes Cedar LNG’s efforts will be more effective.
“It’s going to take some time, but that’s what we’re going to do. For sure.”
Project manager Chad Fournier reported that the pipeline portion of the project is ahead of schedule and under budget. The eight-kilometre route from the Cedar LNG metre station to the facility is 70 per cent complete, while the one-kilometre segment connecting to the LNG Canada site is 90 per cent complete.
“All of the horizontal directional drilling crossings — Porkchop, Eurocan, and Anderson Creek — are complete,” Fournier said. “That is well ahead of the original schedule, and that project is also trending under budget. That’s a huge success story.”
Crews have been demobilized for the winter and will return in spring to complete pressure testing and final installation. The full pipeline project, including site remediation and revegetation, is scheduled for completion in the fourth quarter of 2026.
The delegation reported the Marine Terminal area is currently 8 to 10 per cent complete. Excavation work has been challenging due to variable terrain. The 2025 workplan includes construction of a Mechanically Stabilized Earth (MSE) wall, which will provide the required elevation for the future electrical substation. Activity will slow for winter, with a small crew focused on erosion and sediment control.
Clearing also began in September on the approved alternate route for the transmission line connecting the Minette Substation to the FLNG site. That work is expected to be complete by the end of November. The route was selected to reduce environmental impact, including minimizing disturbance to old-growth forest and marbled murrelet habitat, and limiting new access road development.
Meanwhile, the FLNG vessel is under construction in South Korea. Fabrication began in May, with steel cutting for the hull commencing in June.
“That was a pretty exciting milestone,” Zinter said. “There are many, many components being built in different countries that will be sent to Korea for assembly. It takes a magnitude and scale of products and people to get it all put together.”
The vessel is expected to arrive in Kitimat in May 2028.