Canadian oil and gas company Pembina Pipeline said on Wednesday it will supply 1.0 million tons per annum of liquefied natural gas to Malaysia’s PETRONAS for 20 years from its Cedar LNG project.
The deal marks a key milestone for the $4 billion Cedar LNG project and strengthens Canada’s push to become a global LNG supplier to Asia.
The company said it will give PETRONAS access to an additional natural gas export outlet for its Canadian upstream investment, while providing Pembina with a stable, long-term revenue stream.
Cedar, a joint venture between the Indigenous community Haisla First Nation and Pembina, would produce 3.3 million tons per annum after completion in 2028.
Canada is the world’s sixth-largest natural gas producer, but has been slow in building a strong LNG export industry compared to other major gas-producing nations.
(Reporting by Katha Kalia in Bengaluru; Editing by Vijay Kishore)