Pembina Pipeline Corp has signed a 20-year settlement permitting Petroliam Nasional Bhd (Petronas) to make use of a million metric tons each year (MMtpa) of liquefaction capability on the under-construction Cedar LNG on Canada’s West Coast.
“The settlement is an artificial liquefaction service construction for 1.0 mtpa of capability, beneath which Pembina will present transportation and liquefaction capability to Petronas LNG Ltd over a 20-year time period”, a joint assertion stated. “It allows Petronas to entry a further pure gasoline export outlet for its sizeable Canadian upstream funding, whereas offering Pembina with a steady long-term, take-or-pay income stream and the potential for worth enhancement.
“The settlement additionally demonstrates the shared dedication of each Pembina and Petronas to appreciate the long-term potential of Canadian LNG, supporting vitality safety and advancing the transition to cleaner fuels in Asia”.
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Earlier this yr Petronas shipped its first share from the Shell PLC majority-owned LNG Canada mission, as introduced by the Malaysian state-owned oil and gasoline firm July 7. Petronas owns 25 p.c in LNG Canada, which has a declared capability of 14 MMtpa. Like Cedar LNG, LNG Canada is in Kitimat, British Columbia.
Pembina senior vp and company growth officer Stu Taylor stated, “This settlement additional validates Cedar LNG and highlights the robust demand for international export capability given the clear benefits of Canadian West Coast LNG, together with competitively priced feedstock and advantaged delivery distances to Asian markets”.
Petronas vp for LNG advertising and marketing and buying and selling Shamsairi M Ibrahim stated, “This milestone displays Petronas’ long-standing dedication to our funding in Canada and our continued effort to fortify our international LNG provide portfolio”.
Calgary-based Pembina and the Haisla Nation reached a closing funding resolution on the floating gasoline liquefaction mission final yr, earmarking round $4 billion. Cedar LNG has a nameplate capability of three.3 MMtpa.
The Haisla Nation owns 50.1 p.c of the mission, which they’re internet hosting on tribal territory. Pembina holds 49.9 p.c. In response to the builders, Cedar LNG is the world’s first LNG facility primarily owned by Indigenous individuals.
Earlier than the Petronas deal, Cedar LNG secured 20-year agreements for take-or-pay liquefaction tolling providers with ARC Sources Ltd, additionally primarily based in Calgary, and Pembina for 1.5 MMtpa every.
On March 11, 2025, ARC stated it has entered right into a deal to promote its 1.5-MMtpa offtake from Cedar LNG to Exxon Mobil Corp.
“The settlement commences with industrial operations on the Cedar LNG facility, anticipated late 2028, and continues for the time period of ARC’s liquefaction tolling providers settlement with Cedar LNG Companions LP”, ARC stated.
Saying the Petronas deal, Pembina stated it “expects to achieve definitive agreements for the remaining 0.5 MMtpa of capability by the top of 2025”.
To contact the creator, e mail jov.onsat@rigzone.com
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