Ovintiv Inc., a subsidiary of Pembina Pipeline Corporation, announced the signing of a 12-year agreement for 0.5 million tonnes per annum of Pembina's liquefaction capacity at the Cedar LNG facility. The agreement was announced on December 15, 2025, and represents a significant expansion of Ovintiv's access to global natural gas markets.

Agreement Terms and Timeline

Under the agreement, Pembina will provide transportation and liquefaction capacity to Ovintiv over a 12-year term. The arrangement will commence with commercial operations at Cedar LNG, which are anticipated to begin in late 2028. The agreement enables the export of 0.5 million tonnes of LNG per annum through the Cedar LNG facility.

Strategic Market Access

The agreement provides Ovintiv, identified as one of Canada's largest natural gas producers, with access to additional export markets. This capacity is described as complementary to the company's existing portfolio of natural gas transportation arrangements. The Cedar LNG facility's location on Canada's west coast offers the shortest shipping distance to Asian LNG markets from North America.

Executive Commentary

Meghan Eilers, EVP of Midstream and Marketing at Ovintiv, characterized the announcement as “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.” Eilers expressed excitement about partnering with Pembina to supply low-cost Canadian natural gas to overseas markets, stating the arrangement supports “energy security and global emissions reductions.”

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