KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has signed a 20-year deal with Canada’s Pembina Pipeline Corp for one million tonnes per annum (mtpa) of liquefaction capacity at the Cedar liquefied natural Ggas (LNG) facility through their respective subsidiaries.
Petronas said this will see Pembina supplying transportation and liquefaction services to Petronas LNG Ltd under a synthetic liquefaction service structure.
The project, valued at US$4 billion (gross), is progressing as scheduled and within budget, with operations expected to begin in late 2028.
The national oil and gas company said the deal provides it with an additional natural gas export channel for its substantial upstream assets in Canada, while giving Pembina a steady long-term, take-or-pay revenue stream with room for value growth.
“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,” it said.
Petronas gas and maritime business vice president for LNG marketing and trading Shamsairi M. Ibrahim said the milestone underscores the group’s enduring commitment to its Canadian investments and its ongoing efforts to strengthen its 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 senior vice president and corporate development officer Stu Taylor said the deal builds on the company’s existing partnership with Petronas and supports its export business expansion.
He said the agreement reaffirms the value of the Cedar LNG project and reflects strong global demand for Canadian West Coast LNG, which benefits from competitive feedstock prices and shorter shipping routes to Asia.
Pembina had earlier signed a 20-year take-or-pay agreement for 1.5mtpa of LNG to support the final investment decision for the Cedar LNG project in June 2024.
The new deal with Petronas marks the first step in Pembina’s effort to remarket that capacity, with the remaining 0.5 mtpa expected to be finalised by the end of 2025.
© New Straits Times Press (M) Bhd
