Pembina Pipeline Corporation announced a 20‑year agreement with PETRONAS that secures 1.0 million tonnes per annum of liquefaction capacity at the company’s Cedar LNG facility in Kitimat, British Columbia. The synthetic liquefaction service structure will provide transportation and liquefaction capacity to PETRONAS LNG Ltd. over the full term, giving the Malaysian company an additional Canadian LNG export outlet.
The deal is a key element of Pembina’s remarketing strategy. After signing a 20‑year take‑or‑pay agreement for 1.5 mtpa in June 2024, Pembina now locks in 1.0 mtpa of the remaining capacity and expects to finalize agreements for the final 0.5 mtpa by the end of 2025. This staged approach gives the company a predictable, long‑term revenue stream while it continues to secure the full 2.0 mtpa of Cedar LNG’s capacity.
Cedar LNG is a $4 billion project that is on schedule and on budget. The facility is powered by renewable electricity from BC Hydro, making it one of the lowest‑carbon LNG plants in the world. It is also the first Indigenous majority‑owned LNG project, a partnership between Pembina and the Haisla Nation that underscores the company’s commitment to responsible development.
For PETRONAS, the agreement expands its Canadian footprint. The company already holds a 25 % stake in the LNG Canada facility in Kitimat, from which it shipped its first cargo. The new contract provides PETRONAS with a dedicated outlet for its Canadian gas resources and strengthens its global LNG portfolio, reinforcing its strategy to diversify supply sources and meet growing demand in Asia.
Financially, the agreement adds a stable, long‑term revenue stream that offsets the earnings miss reported in Pembina’s Q2 2025 results. While the company’s earnings fell short of expectations in that quarter, the new contract improves the predictability of cash flow and supports the capital program needed to bring Cedar LNG online in late 2028. The deal also enhances Pembina’s revenue base, positioning it to capture the remaining capacity and to benefit from the expected growth in global LNG demand.
Management emphasized the strategic significance of the deal. Stu Taylor, Pembina’s Senior Vice President & Corporate Development Officer, said the agreement “further validates Cedar LNG and highlights the strong demand for global export capacity.” Shamsairi M Ibrahim, PETRONAS’s Vice President of LNG Marketing and Trading, noted that the partnership “underscores PETRONAS’s commitment to responsibly monetize its Canadian gas resources and enhances supply diversity for customers.”
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