Cedar LNG partner signs major commercial deal for $4 billion Kitimat project

Flaring of waste gas at the LNG Canada plant in Kitimat. Cedar LNG, 50.1 per cent owned by the Haisla Nation and 49.9 per cent owned by Pembina Pipeline Corp., has won Petronas as a major customer. Photo by Government of B.C.

The minority partner in the $4 billion Cedar LNG project under development near Kitimat has signed a major commercial deal to use the plant’s capacity just as its owners are seeking permission to increase its output.

Calgary-headquartered Pembina Pipeline Corp., which owns 49.9 per cent of the Haisla-Nation led LNG proposal, said it reached a 20-year agreement with Malaysian state-owned firm Petronas for one million tonnes of LNG output per year of the plant’s three-million tonnes per year capacity.

Terms of the deal will see Pembina provide another export outlet