Petronas Secures 20-Year Liquefaction Deal with Cedar LNG

Malaysia’s Petronas has finalized a significant 20-year agreement for liquefaction capacity at the Cedar LNG project in British Columbia. The deal, which includes access to one million tonnes per year of liquefaction capacity, marks a strategic move for Petronas, one of the largest natural gas producers in Canada.

Cedar LNG is located in Kitimat, B.C. and is being developed as a collaboration between Pembina Pipeline Corp. and the Haisla Nation. The facility is on track to commence operations by late 2028. This project aims to provide a crucial export outlet for natural gas sourced from Canada.

In a previous development, Pembina had established a separate 20-year take-or-pay liquefaction tolling service agreement for an additional 1.5 million tonnes per year at the Cedar LNG facility. The company has indicated plans to finalize agreements for the remaining 500,000 tonnes per year of capacity by the end of this year.

The Cedar LNG project is positioned to significantly enhance Canada’s role in the global liquefied natural gas market, catering to increasing demand for cleaner energy sources. With Petronas’s long-term commitment, the project is expected to play a vital role in meeting both domestic and international energy needs.

This announcement follows a series of developments in the Canadian energy sector, as companies seek to expand their capabilities in liquefied natural gas production. The partnership between Pembina and the Haisla Nation highlights a growing trend of collaboration between industry leaders and Indigenous communities in Canada, aiming to ensure sustainable and responsible resource development.

The agreement with Petronas is seen as a positive indicator for future investments in Canadian liquefied natural gas infrastructure. As the global demand for LNG continues to rise, securing long-term contracts like this one will be essential for maintaining competitive positioning in the market.

With the Cedar LNG facility nearing its operational target date, industry stakeholders are closely monitoring the progress and potential impacts of this pivotal project on the energy landscape in Canada and beyond.