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Haisla First Nation's Cedar LNG project faces legal challenge

Steelhead LNG alleges patent infringement on its floating LNG design
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Steelhead LNG developed what it says is a proprietary and patented floating LNG design.

A would-be LNG developer that had proposed a floating LNG plant on Vancouver Island is suing Cedar LNG and Samsung Heavy Industries for patent infringement.

Steelhead LNG had proposed to build a floating LNG plant on Vancouver Island, and had worked with First Nations as partners.

But in 2019, Steelhead LNG pushed pause on its plans for a Vancouver Island LNG plant. Meanwhile, the Haisla First Nation raced forward with its Cedar LNG project in Kitimat, which was approved and which has received a final investment decision. The Haisla selected Samsung Heavy Industries and Black and Veatch to design and build the floating LNG terminal.

Like the Steelhead LNG proposal, Cedar LNG uses a floating LNG terminal design. Steelhead LNG alleges the Cedar LNG project uses “pivotal aspects” of the floating LNG plant that it designed and which is proprietary and patented.

“Through the incorporation of electric drive compressors, air cooling modules, and integrated storage, among other innovative features, Steelhead LNG's patented solution can achieve virtually unparalleled carbon emission reductions and avoid harmful environmental impacts associated with cooling water systems in such facilities,” Steelhead LNG said in a press release.

In a suit filed in the Seoul Central District Court in South Korea, Steelhead LNG seeks to have the Cedar LNG project in Kitimat halted and to secure damages for infringement on its Korean patent.

"Steelhead LNG has dedicated significant resources to developing its unique LNG export facility solution,” Steelhead LNG president Victor Ojeda said in a press release.

“Our intellectual property is the cornerstone of that effort, and we have a responsibility to safeguard it against unauthorized use. Our multi-year efforts to resolve this dispute with Cedar LNG have been repeatedly rebuffed, unfortunately necessitating this legal action." 

Cedar LNG did not immediately respond to BIV News' request for a comment.

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