Rendering of Cedar LNG floating LNG facility Cedar LNG
Offshore Processing & Storage

Canadian LNG developer seeks damages for alleged patent infringement in floating facility construction

Baird Maritime

Steelhead LNG, a Vancouver, Canada-based developer in the liquefied natural gas (LNG) industry, has commenced patent infringement proceedings against Cedar LNG and South Korean shipbuilder Samsung Heavy Industries (SHI) as part of ongoing efforts to protect proprietary technology and intellectual property rights.

Steelhead LNG has filed a lawsuit with the Seoul Central District Court, alleging that Cedar LNG's and SHI's activities infringe on Steelhead LNG's Korean patent.

Cedar LNG is a proposed floating LNG (FLNG) export facility in Kitimat, British Columbia. SHI was selected by Cedar LNG, along with Black and Veatch, to construct the Cedar FLNG facility, with construction announced to have commenced earlier this year.

The lawsuit seeks to halt the construction of Cedar LNG's facility, secure damages for the unauthorised use of Steelhead LNG's patent, and obtain an injunction to prevent further infringement.

"Steelhead LNG has dedicated significant resources to developing its unique LNG export facility solution, said Victor Ojeda, President at Steelhead LNG. "Our intellectual property is the cornerstone of that effort, and we have a responsibility to safeguard it against unauthorised use. Our multi-year efforts to resolve this dispute with Cedar LNG have been repeatedly rebuffed, unfortunately necessitating this legal action."

The patent in question pertains to aspects of Steelhead LNG's unique solution; a leading-edge, cost-effective way of liquefying natural gas for export to demand markets. Through the incorporation of electric drive compressors, air cooling modules, and integrated storage, among other features, Steelhead LNG's patented solution can achieve what the company claims are "unparalleled" carbon emission reductions as well as avoid harmful environmental impacts associated with cooling water systems in such facilities.

Steelhead LNG holds patents regarding its LNG export facility solution in Canada, the United States, Korea, Australia, and Mexico. The company said its decision to pursue legal action is in line with its goal of protecting its technological advancements and ensuring that fair competitive practices in the industry are maintained.