Ovintiv signs on to Cedar LNG project as long-term customer
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Article contentCALGARY — Ovintiv Inc. has signed on as a long-term customer for the Cedar LNG project that Pembina Pipeline Corp. and the Haisla Nation are constructing on the West Coast.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentA 12-year agreement will see 500,000 tonnes of gas per year shipped across British Columbia from Ovintiv’s natural gas fields to the floating liquefied natural gas facility in Kitimat. There, the gas will be chilled into a liquid state so that it can be loaded on specialized tankers and sold in Asia.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentPembina is to provide pipeline transportation and liquefaction capacity to Ovintiv and, in exchange, lock down a stable revenue stream.Article contentArticle content“Ovintiv is one of the largest and most innovative liquids-rich natural gas producers in Canada’s Montney play, and Pembina is pleased to further support their growing business by providing access through Cedar LNG to diversified, higher value global markets for their product,” said Stu Taylor, Pembina’s senior vice-president and corporate development officer.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentDenver-based Ovintiv changed its name from Encana and moved its headquarters from Calgary in 2020.Article contentIt has been building up its position in the Montney formation, which stretches through parts of northeastern B.C. and northwestern Alberta, most recently through its planned $3.8-billion acquisition of NuVista Energy Ltd.Article content“Today’s announcement marks a significant advancement in our strategy to expand market access and maximize the profitability of our Montney gas resource through participation in global LNG markets,” said Meghan Eilers, executive vice-president of midstream and marketing at Ovintiv.Article contentThe Haisla Nation owns 50.1 per cent of Cedar LNG, with Pembina Pipeline holding the rest. The facility will have more than three million tonnes per year of capacity.Article contentArticle contentPembina had been looking for producers to take over its share of the plant. Last month, it announced a 20-year deal with Malaysia’s Petronas for one million tonnes of capacity.Article contentThat means with the Ovintiv deal, the full 1.5 million tonnes Pembina had been looking to remarket has now been spoken for.Article contentConstruction on Cedar LNG is trending on time and on budget, with a late 2028 in-service date, Pembina said. Next year is expected to be the most capital-intensive year for the US$4-billion project, with construction on the floating LNG vessel continuing.Article contentIn 2026, the partners also aim to finish the substation and mooring foundations at the marine terminal site, begin installing a transmission line and complete a pipeline linking to the facility.Article contentThis report by The Canadian Press was first published Dec. 16, 2025.Article contentCompanies in this story: (TSX:PPL)Article contentTrending The Federal Reserve’s rate cut was a clear signal to investors Investor McKinsey plots thousands of layoffs in consulting slowdown Work Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance Bank of Canada expected to hold interest rate steady through 2026 as inflation cools Economy Bank of Canada wants to make stablecoins 'good money,' Macklem says Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
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