CALGARY, Alberta, Canada: Pembina Pipeline Corporation has signed a 20-year agreement with Petroliam Nasional Bhd (PETRONAS) covering 1 million tonnes of export capacity annually.
According to PETRONAS, the deal secures liquefaction and transportation services for PETRONAS LNG Ltd at Pembina’s Cedar LNG project in Kitimat, British Columbia.
It said that this also guarantees Pembina a long-term take-or-pay revenue stream while giving PETRONAS an additional export route for its Canadian gas assets.
“The arrangement supports their shared aim of strengthening energy security and expanding access to lower-carbon fuels across Asia,” it said.
Commenting on this, Pembina’s Senior Vice-President and Corporate Development Officer, Stu Taylor, said the partnership deepens a long-standing relationship with PETRONAS and reinforces global confidence in West Coast LNG.
“PETRONAS is a global LNG leader and one of the largest gas producers in Canada. This agreement extends our partnership and highlights strong demand for export capacity, given Canada’s competitive feedstock and shorter shipping routes to Asia,” he said.
PETRONAS’ Vice-President of LNG Marketing and Trading, Shamsairi M. Ibrahim, said the deal aligns with the company’s commitment to responsible energy development and a resilient global supply network.
“It improves supply diversity and strengthens reliability for customers while reinforcing our dedication to responsible energy solutions,” he said.
For the record, Pembina had earlier secured a 20-year liquefaction tolling agreement for 1.5 million tonnes per annum to support Cedar LNG’s final investment decision in June 2024.
The latest deal marks the first step in remarketing that capacity, with the remaining 0.5 million tonnes expected to be finalised by year-end.
Jointly owned by Pembina and the Haisla Nation, the USD4-billion Cedar LNG project remains on schedule and within budget, with operations targeted for late 2028.
Powered by renewable electricity from BC Hydro, the facility is designed to be among the lowest-carbon-intensity LNG plants in the world.
