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 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.
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