Pembina Pipeline Corp has signed a 20-year agreement allowing Petroliam Nasional Bhd (Petronas) to use one million metric tons per annum (MMtpa) of liquefaction capacity at the under-construction Cedar LNG on Canada’s West Coast.
“The agreement is a synthetic liquefaction service structure for 1.0 mtpa of capacity, under which Pembina will provide transportation and liquefaction capacity to Petronas LNG Ltd over a 20-year term”, a joint statement said. “It enables Petronas to access an additional natural gas export outlet for its sizeable Canadian upstream investment, while providing Pembina with a stable long-term, take-or-pay revenue stream and the potential for value enhancement.
“The agreement also demonstrates the shared commitment of both Pembina and Petronas to realize the long-term potential of Canadian LNG, supporting energy security and advancing the transition to cleaner fuels in Asia”.
Earlier this year Petronas shipped its first share from the Shell PLC majority-owned LNG Canada project, as announced by the Malaysian state-owned oil and gas company July 7. Petronas owns 25 percent in LNG Canada, which has a declared capacity of 14 MMtpa. Like Cedar LNG, LNG Canada is in Kitimat, British Columbia.
Pembina senior vice president and corporate development officer Stu Taylor said, “This agreement further validates Cedar LNG and highlights the strong demand for global export capacity given the clear advantages of Canadian West Coast LNG, including competitively priced feedstock and advantaged shipping distances to Asian markets”.
Petronas vice president for LNG marketing and trading Shamsairi M Ibrahim said, “This milestone reflects Petronas’ long-standing commitment to our investment in Canada and our continued effort to fortify our global LNG supply portfolio”.
Calgary-based Pembina and the Haisla Nation reached a final investment decision on the floating gas liquefaction project last year, earmarking around $4 billion. Cedar LNG has a nameplate capacity of 3.3 MMtpa.
The Haisla Nation owns 50.1 percent of the project, which they are hosting on tribal territory. Pembina holds 49.9 percent. According to the developers, Cedar LNG is the world’s first LNG facility primarily owned by Indigenous people.
Before the Petronas deal, Cedar LNG secured 20-year agreements for take-or-pay liquefaction tolling services with ARC Resources Ltd, also based in Calgary, and Pembina for 1.5 MMtpa each.
On March 11, 2025, ARC said it has entered into a deal to sell its 1.5-MMtpa offtake from Cedar LNG to Exxon Mobil Corp.
“The agreement commences with commercial operations at the Cedar LNG facility, expected late 2028, and continues for the term of ARC’s liquefaction tolling services agreement with Cedar LNG Partners LP”, ARC said.
Announcing the Petronas deal, Pembina said it “expects to reach definitive agreements for the remaining 0.5 MMtpa of capacity by the end of 2025”.
To contact the author, email jov.onsat@rigzone.com
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