Petronas Secures 20-Year LNG Deal with Cedar LNG Project

Malaysia’s Petronas has finalized a significant long-term agreement with Pembina Pipeline Corp. for liquefaction capacity at the Cedar LNG project in British Columbia. This 20-year deal will provide Petronas with access to one million tonnes per year of liquefaction capacity, enhancing its position as a major player in the natural gas sector.

The Cedar LNG facility is situated in Kitimat, British Columbia, and is being developed through a partnership between Pembina and the Haisla Nation. The project is expected to commence operations by late 2028, marking a critical step in advancing Canada’s liquefied natural gas (LNG) export capabilities.

Capacity Expansion Plans

Pembina has previously entered into a separate 20-year take-or-pay liquefaction tolling service agreement, which covers an additional 1.5 million tonnes per year of LNG at the same facility. The company is optimistic about securing definitive agreements for the remaining 500,000 tonnes per year of capacity by the end of this year.

This strategic partnership positions Petronas to capitalize on the growing demand for LNG in international markets. The Cedar LNG project is expected to play a crucial role in fulfilling this demand, particularly as countries seek cleaner energy sources to transition away from coal and oil.

The announcement of this deal comes at a time when many energy companies are exploring opportunities to expand their LNG portfolios in response to global energy trends. The collaboration between Petronas and Pembina underscores the potential for significant growth in Canada’s LNG sector.

The Cedar LNG project represents a pivotal development in British Columbia’s energy landscape, promising to create jobs and stimulate economic growth in the region. As the project moves forward, it will also contribute to the Haisla Nation’s economic development, ensuring that local communities benefit from the natural resources in their territory.

The long-term agreement with Petronas marks a significant milestone for Pembina and the Cedar LNG project, reinforcing the importance of partnerships in advancing energy infrastructure and meeting international energy demands.