CALGARY – Pembina Pipeline Corp. says it has seen an uptick in interest from potential long-term contracted natural gas suppliers since making a firm decision to go ahead with the Cedar LNG project.
The Calgary-based pipeline company and its project partner, the Haisla First Nation, green-lit the US$4-billion facility in June.
Pembina CEO Scott Burrows said Wednesday the positive final investment decision has given potential suppliers more confidence, and he expects the facility’s remaining uncontracted capacity will demand a “premium.”
The project will involve the construction, expected to start in mid-2025, of a floating liquefied natural gas terminal near Kitimat, B.C.
Cedar LNG will use natural gas from Western Canada to produce liquefied natural gas for export to Asian markets, with a capacity of 3.3 million tonnes per year.
Pembina has already signed a 20-year contract with Calgary-based ARC Resources Ltd., which will supply the natural gas for about half of Cedar LNG’s total production.
This report by The Canadian Press was first published Nov. 6, 2024.
Companies in this story: (TSX:PPL)