ARC Resources Enters 20 Year Sale And Purchase Agreement With ExxonMobil For Cedar LNG Offtake
ARC Resources (TSX: ARX) has entered into a long term sale and purchase agreement for its offtake from the Cedar LNG project in British Columbia, which will see the sale of its liquefied natural gas into Asian markets.
The agreement is with that of ExxonMobil LNG Asia Pacific, whom has agreed to purchase approximately 1.5 million tonnes per year of LNG from ARC at international LNG pricing.
The agreement is expected to last for the entire term of ARC’s liquefaction tolling services agreement with Cedar LNG. That term length is an initial 20 years, once commercial operations commence in 2028.
ARC initially signed the long term liquefaction tolling services agreement with Cedar LNG back in April 2024, with ARC agreeing to deliver approximately 200 MMcf per day of natural gas for liquefaction to the plant, once its operations begin in the second half of 2028. The facility is expected to have one of the shortest shipping routes to key Asian markets.
“Today, we have reached a significant milestone in our strategy to diversify and expand margins through participation in the global LNG market. Through this Agreement, we have achieved our target of linking approximately 25 per cent of our future natural gas production to international pricing,” commented Terry Anderson, CEO of ARC Resources.
Cedar LNG, based in Kitimat, BC, is the first majority Indigenous-owned LNG facility in Canada, which is being constructed under a partnership with Haisla Nation and Pembina Pipeline.
Arc Resources last traded at $25.01 on the TSX.
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