Loan for half a billion approved for LNG project in BC [Video]

Canada’s Crown corporation dedicated to helping industries export overseas, has confirmed up to $500 million will be financed for a First Nation-led LNG project in British Columbia.

This week, Export Development Canada (EDC) said it will provide a loan to Cedar LNG, based in Kitimat, B.C., of between $400 and $500 million as part of a wider lending group. EDC only provides dollar ranges, not a specific amount, to “protect the confidentiality and commercial sensitivity of our customers, as outlined in our policy,” the department told Canada’s National Observer.

The loan will support development of the project and the “associated onshore infrastructure,” EDC told Canada’s National Observer in a statement.

The EDC loan represents a key piece of the financing puzzle that is now solved for Cedar LNG. The project has also secured a construction term loan with a “syndicate of banks” at a favourable rate for around 60 per cent of the approximately $4-billion project cost.

Cedar LNG …