Deal reached for Cedar Ridge LNG’s total production

An artist’s rendering of the Cedar LNG project, looking south from above Douglas Channel towards the proposed facility and docked LNG carrier. (Image: ARC)

ARC Resources has entered into a long-term sale and purchase agreement (SPA) with ExxonMobil LNG Asia Pacific of liquefied natural gas (LNG).

Under the agreement, EMLAP will purchase all of ARC’s LNG offtake from the Cedar LNG Project – approximately 1.5 million tonnes per annum (MTPA) – at international LNG pricing. The agreement commences with commercial operations at the Cedar LNG Facility, expected late 2028, and continues for the term of ARC’s liquefaction tolling services agreement with Cedar LNG Partners.

“Today, we have reached a significant milestone in our strategy to diversify and expand margins through participation in the global LNG market. Through this Agreement, we have achieved our target of linking approximately 25 per cent of our future natural gas production to international pricing,” said Terry Anderson, President and Chief Executive Officer, ARC Resources. “We are proud to partner with ExxonMobil – a global energy leader – and demonstrate the critical role that low-cost Canadian natural gas has to play in meeting the world’s growing energy demand.”

“This agreement provides ExxonMobil with advantaged access to Asian LNG markets by establishing ExxonMobil’s first long-term offtake position on Canada’s Pacific Coast. We look forward to working with ARC Resources, one of Canada’s largest and most experienced natural gas producers, as we continue to expand and diversify ExxonMobil’s LNG portfolio and provide the lower-emissions energy the world needs,” said Andrew Barry, Vice President Global LNG Marketing, ExxonMobil Asia Pacific.

Over the past three years, ARC has entered into three long-term agreements that will provide exposure to international LNG pricing. In 2022, ARC announced an agreement to supply 140,000 MMBtu/day of natural gas to Cheniere’s Corpus Christi Stage III expansion with pricing linked to Platts JKM (Japan Korea Marker). In 2023, the Company announced its second agreement with Cheniere to supply 140,000 MMBtu/day to Cheniere’s SPL Expansion Project with pricing linked to the Dutch Title Transfer Facility (TTF). This SPA follows ARC’s recent long-term liquefaction tolling services agreement with Cedar LNG – a partnership between the Haisla Nation and Pembina Pipeline– where ARC will deliver approximately 200 MMcf per day of natural gas to the Cedar LNG Project for liquefaction.

Artist’s Rendering - View looking south from above Douglas Channel towards the proposed facility and docked LNG carrier