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By DayakDaily Team KUCHING, Nov 6: Petroliam Nasional Berhad (PETRONAS) and Pembina Pipeline Corporation (Pembina) have announced the signing of a 20-year agreement for 1 million tonnes per annum (mtpa) of liquefaction capacity at the Cedar LNG (liquefied natural gas) project by their subsidiaries. The Agreement is a synthetic liquefaction service structure for 1.0 mtpa 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 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. According to PETRONAS’ press statement, Pembina’s senior vice president and corporate development officer Stu Taylor said the agreement is an extension of Pembina’s existing relationship with PETRONAS and an important development in their ongoing expansion of its export business. “This agreement further validates Cedar LNG and highlights the strong demand for global export capacity given the clear advantages of Canadian West Coast LNG, including competitively priced feedstock and advantaged shipping distances to Asian markets. “It also demonstrates Pembina’s commitment to delivering growth and executing our strategy within the company’s financial guardrails,” said Stu. Meanwhile, Shamsairi M Ibrahim, vice president of LNG Marketing and Trading, PETRONAS Gas and Maritime Business said that the milestone reflect PETRONAS’ long-standing commitment to their investment in Canada and continued effort in fortifying their global LNG supply portfolio. “This arrangement improves supply diversity and enhances reliability of supply for customers, while reinforcing our steadfast commitment to deliver reliable, lower-carbon energy solutions to meet Asia’s growing energy needs,” he said. Pembina previously signed a 20-year take-or-pay liquefaction tolling service agreement for 1.5 mtpa of LNG to support the final investment decision on Cedar LNG in June 2024 and ultimately maintain key project timing and economic parameters, with the expectation of remarketing the capacity at a later stage. The agreement with PETRONAS marks a significant first step in Pembina’s remarketing efforts. Pembina expects to reach definitive agreements for the remaining 0.5mtpa of capacity by the end of 2025. The USD4 billion (gross) Cedar LNG project remains on-time and on-budget, with an expected in-service date in late 2028. Pembina is a leading energy transportation and midstream service provider that has served North America’s energy industry for more than 70 years. Pembina owns an extensive network of strategically located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas facility in Kitimat, British Columbia, Canada, within the traditional territory of the Haisla Nation. —DayakDaily
