The Canadian oil and gas transportation and storage company Pembina Pipeline has secured a 20-year take-or-pay, fixed toll liquefaction tolling services agreement with ARC Resources for 1.5 Mt/year of LNG. As part of the agreement, ARC Resources will supply Cedar LNG approximately 200 mcf/d (5.7 mcm/day) of natural gas for liquefication to the Cedar LNG project through the Coastal GasLink pipeline from its production base in Montney (British Columbia, Canada) for a term of 20 years starting from 2028.
The Cedar LNG project, a joint venture by Pembina and the Haisla Nation, is a 3 Mt/year floating LNG facility located on Haisla Nation-owned land in Kitimat, British Columbia (western Canada). The project has a total estimated cost of about US$4bn, and the company expects to take a final investment decision (FID) by mid-2024, when approximately 60% of the asset-level debt financing gets secured.