Malaysian energy company Petronas has signed a 20-year liquefaction agreement with Pembina Pipeline Corporation, marking the latest development in the Cedar LNG project on the B.C. coast.
Under the agreement, the Malaysian energy company will have access to one million tonnes per year of liquefaction capacity at the Indigenous majority-owned facility, which is being jointly developed by Pembina and the Haisla Nation. Pembina will also provide transportation and liquefaction services for Petronas’s Canadian natural gas operations.
Cedar LNG was approved in mid-2024 and is advancing to the construction of a floating LNG facility and marine export terminal along the Douglas Channel. The site benefits from an established deepwater inlet and one of the shortest, ice-free shipping routes to Asia.
Developers have applied to increase the facility’s processing capacity from 400 to 500 million cubic feet per day, which would raise total production from roughly 3 million tonnes per year to 3.75 million.
Earlier this year, Pembina signed a 20-year agreement for 1.5 million tonnes of LNG to support the project’s final investment decision. It now anticipates finalizing arrangements for the plant’s remaining capacity by the end of 2025.
Construction continues to be on schedule and within budget, with operations expected to begin in late 2028.
