Malaysia’s Petronas signed a 20-year deal for 1.0 million tonnes-per-year of liquefaction capacity at the $4 billion Cedar LNG project in Kitimat, BC, Pembina Pipeline said. The move is slated to advance commercialization of the 3.3 mtpa facility slated for late 2028.
The agreement gives Petronas long-term access to a planned natural gas export outlet on the BC north coast. Pembina and the Haisla Nation are co-developers of Cedar LNG, with Pembina describing Petronas as one of the largest gas producers in Canada.
Pembina had previously executed a separate 20-year take-or-pay liquefaction tolling service agreement for 1.5 mtpa to maintain timing and economics after the 2024 FID. With Petronas now taking 1.0 mtpa, Pembina expects to finalize definitive agreements for the remaining 0.5 mtpa of capacity by the end of 2025.
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The firm says Cedar LNG is on time and on budget with an expected in-service date in late 2028, keeping the project aligned with West Coast export windows to Asian buyers. Nameplate capacity is 3.3 mtpa.
The transaction is a milestone for the Indigenous-led Cedar LNG partnership and Canada’s effort to expand LNG supply to Asia from the West Coast.
Information for this briefing was found via CBC and the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
