Vancouver: Petroliam Nasional Bhd (Petronas) and Canada’s Pembina Pipeline Corporation have entered into a 20-year agreement for 1.0 million tonnes per annum (mtpa) liquefaction capacity at the Cedar Liquefied Natural Gas (LNG) facility through their subsidiaries.
According to BERNAMA News Agency, the agreement establishes a synthetic liquefaction service structure where Pembina will offer transportation and liquefaction capacity to Petronas LNG Ltd over the contract’s duration.
The arrangement provides Petronas with an additional outlet for its substantial Canadian upstream investments, while Pembina benefits from a stable, long-term revenue stream and the potential for value enhancement. “The agreement also demonstrates the shared commitment of both Pembina and Petronas to realise the long-term potential of Canadian LNG, supporting energy security and advancing the transition to cleaner fuels in Asia,” Petronas stated.
Shamsairi M. Ibrahim, vice president of LNG marketing and trading at Petronas Gas and Maritime Business, emphasized that the agreement underscores Petronas’ enduring commitment to Canada and its effort to strengthen its global LNG supply portfolio. He noted that the partnership with Pembina and the Cedar LNG project highlights Petronas’ role as an integrated energy player dedicated to responsibly monetizing gas resources, enhancing supply diversity, and delivering reliable, lower-carbon energy solutions to Asia.
Stu Taylor, Pembina’s senior vice president and corporate development officer, remarked that the partnership validates Cedar LNG and underscores the strong demand for global export capacity, highlighting the competitive advantages of Canadian West Coast LNG. “This agreement is an extension of our existing relationship with them and an important development in Pembina’s ongoing expansion of its export business,” he added.
The agreement is a critical step in Pembina’s efforts to remarket, as it aims to finalize agreements for the remaining 0.5 mtpa of capacity by the end of the year. The Cedar LNG project, valued at US$4 billion, remains on schedule and within budget, with an anticipated operational date set for late 2028.