Malaysia’s PETRONAS and Canada’s Pembina Pipeline Corporation have announced the signing of a 20-year agreement for 1 Mt/year of Pembina’s liquefaction capacity at the Cedar LNG terminal, located on Canada’s west coast (PETRONAS press release, 05/11/2025).
“The agreement is a synthetic liquefaction service structure for 1 Mt/year of capacity, under which Pembina will provide transportation and liquefaction capacity to PETRONAS LNG Ltd over a 20-year term. It enables PETRONAS to access an additional natural gas export outlet for its sizeable Canadian upstream investment, while providing Pembina with a stable long-term, take-or-pay revenue stream,” according to the company’s statement.
- Cedar LNG is a LNG facility in Kitimat, British Columbia, being developed through a partnership between Pembina and the Haisla Nation, a local Indigenous community of the region.
- The US$4bn project is on track to enter service in late 2028 and is expected to produce 3.3 Mt/year upon completion.
Pembina previously signed a 20-year take-or-pay liquefaction tolling service agreement for 1.5 Mt/year of LNG to support the final investment decision on Cedar LNG in June 2024. The company expects to finalize agreements for the remaining 0.5 Mt/year of capacity by the end of 2025.