Pembina Pipeline Corporation and Petroliam Nasional Berhad, or PETRONAS, have announced a 20-year agreement for one million tonnes per year of liquefaction capacity at the Cedar LNG facility in Kitimat, British Columbia. The agreement provides PETRONAS with a new export outlet for its Canadian natural gas investments while ensuring Pembina receives a stable, long-term revenue stream.
The Cedar LNG project, a partnership with the Haisla Nation, is a floating facility powered by renewable electricity, making it one of the world’s lowest-carbon LNG operations. The $4 billion project remains on schedule and on budget, with commercial operations expected in late 2028.
This agreement builds on Pembina’s previous 20-year 1.5 million tonnes per year take-or-pay arrangement, which supported the project’s final investment decision. Pembina expects the remaining 0.5 million tonnes of capacity to be allocated by the end of 2025.
Executives from both companies emphasize that the partnership strengthens energy security, diversifies supply for Asia, and supports the transition to cleaner fuels. The agreement also highlights the advantages of Canada’s west coast LNG, including competitive feedstock pricing and strategic shipping routes.
Pembina, with more than 70 years of experience in energy transportation, continues to expand its export business, while PETRONAS reinforces its role as a global integrated energy provider committed to responsible resource development.
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