ARC Resources has secured a long-term agreement with ExxonMobil LNG Asia Pacific, a subsidiary of ExxonMobil, to supply liquefied natural gas (LNG) from the Cedar LNG Project in Canada.
The contract involves the provision of around 1.5 million tonnes per year (mtpa) of LNG at prices aligned with international markets.
ExxonMobil Asia Pacific global LNG marketing vice president Andrew Barry said: “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.”
The commencement of this arrangement is linked to the initiation of commercial operations at the Cedar LNG facility, projected for late 2028. The deal is part of ARC Resources’ existing liquefaction tolling services contract with Cedar LNG Partners, a joint venture between the Haisla Nation and Pembina Pipeline.
ARC Resources has committed to deliver approximately 200 million cubic feet of natural gas each day for processing at the facility.
ARC Resources president and CEO Terry Anderson said: “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% of our future natural gas production to international pricing.
“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.”
Cedar LNG is a proposed floating facility located in Kitimat, British Columbia, within Haisla Nation’s traditional lands.
The project aims to exploit Canada’s extensive natural gas resources alongside British Columbia’s developing LNG infrastructure to produce low-carbon, cost-effective Canadian LNG for global distribution.
In June 2024, Cedar LNG announced a positive final investment decision. Early construction activities have begun, and the facility is anticipated to become operational by late 2028.
The project has agreements in place for 20-year take-or-pay liquefaction tolling services with both ARC Resources and Pembina Pipeline for 1.5mtpa each.
In recent years, ARC Resources has signed three long-term contracts connecting its business to international LNG pricing mechanisms.
In 2022, the company reached an agreement with Cheniere to provide 140,000 million British thermal units (MMBtu) daily to Cheniere’s Corpus Christi Stage III expansion, priced according to Platts JKM (Japan Korea Marker).
Another agreement followed in 2023 for an equal volume for Cheniere’s SPL Expansion Project, with pricing tied to the Dutch Title Transfer Facility (TTF).
