ARC Resources to supply ExxonMobil with LNG
ARC Resources has entered into a long-term liquefied natural gas (LNG) supply agreement with a unit of ExxonMobil.
Global LNG demand has risen in recent years amid a shift toward cleaner energy, with the U.S. emerging as a major supplier to both Europe and Asia.
ExxonMobil LNG Asia Pacific will purchase all of ARC's LNG offtake from the Cedar LNG project, representing about 1.5 metric MMtpy, at international LNG pricing, ARC said.
The Cedar LNG project, a partnership between the Haisla Nation and Pembina Pipeline located on Canada's West Coast, is expected to commence commercial operations later in 2028 and will have a capacity of 3.3 metric MMtpy.
Last year, oil and gas transportation firm Pembina Pipeline said it and the Haisla Nation decided to go ahead with the construction of the $4-B project.
In 2023, ARC signed a 20-yr agreement to supply and liquefy natural gas with Cedar LNG. It planned to supply about 200 MMft3d of natural gas with the project, resulting in the equivalent of 1.5 MMtpy of LNG.
"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," said Andrew Barry, vice president of global LNG marketing, ExxonMobil Asia Pacific Pte. Ltd.
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