Pembina, PETRONAS Sign 20-Year Cedar LNG Capacity Deal
The $4 billion facility, expected in service by 2028, will supply Canadian LNG to Asia and provide Pembina with long-term, take-or-pay revenues.
(P&GJ) — Pembina Pipeline Corp. and PETRONAS have signed a 20-year agreement covering 1 million tonnes per year (MMtpy) of liquefaction capacity at the Cedar LNG project on Canada’s West Coast, the companies said.
Under the synthetic liquefaction service structure, Pembina will transport and liquefy gas for PETRONAS LNG Ltd., providing the Malaysian company an additional export outlet for its Canadian gas production while securing Pembina a long-term, take-or-pay revenue stream.
“PETRONAS is a global LNG industry leader and one of the largest gas producers in Canada. This agreement is an extension of our existing relationship with them and an important development in Pembina’s ongoing expansion of its export business,” said Stu Taylor, Pembina’s senior vice president and corporate development officer. “It also demonstrates Pembina's commitment to delivering growth and executing our strategy within the company's financial guardrails.”
PETRONAS said the deal strengthens its global LNG portfolio and reinforces its commitment to Canadian investment.
“We welcome this partnership with Pembina and the Cedar LNG project, as it underscores PETRONAS' role as an integrated energy player and demonstrates our dedication to responsibly monetize our gas resources,” said Shamsairi M. Ibrahim, vice president of LNG marketing and trading at PETRONAS Gas and Maritime.
The agreement represents the first major capacity remarketing by Pembina since it secured a 20-year, 1.5 MMtpy tolling deal in 2024 to support the Cedar LNG final investment decision. Pembina said it expects to finalize agreements for the remaining 0.5 MMtpy by the end of 2025.
The US$4 billion project—jointly owned by Pembina and the Haisla Nation—remains on time and on budget, with an expected in-service date in late 2028. Cedar LNG will be among the world’s first Indigenous majority-owned LNG facilities, supplying lower-carbon Canadian gas to Asian markets.