On April 4, Pembina Pipeline Corp. announced the significant progress achieved on the proposed Cedar LNG project, including securing long-term commercial offtake support. Baker Botts acted as legal counsel to Pembina on the commercial agreements between the project company, Cedar LNG Partners LP, and offtakers ARC Resources Ltd and Pembina.
These critical milestones allow Cedar LNG to initiate the project financing process and the Haisla Nation, Pembina’s partner in Cedar LNG, to commence a process to support its equity contributions in advance of a final investment decision (FID), expected by the middle of 2024.
The commercial offtake secured encompasses a 20-year take-or-pay liquefaction tolling services agreement with a fixed toll with ARC Resources for 1.5 million tpy. In addition, Pembina has executed an identical bridging agreement with Cedar LNG for 1.5 million tpy. Pembina intends to assign its capacity to a third-party following a positive FID, with commercial offtake discussions continuing with multiple other customers.