Canada's LNG Gets Further Support

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)

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Summary

Pembina Pipeline gets gas support for the proposed Cedar LNG facility in British Columbia. The province is the first out of the gate with exports of the super-cooled gas from North America's western shores.

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Supply Deal for Cedar LNG

Natural gas producer Ovintiv Incorporated (Calgary, Alberta) said it signed a 12-year supply agreement with a developer of the planned Cedar LNG export facility in British Columbia, part of a Canadian effort to diversify its trade.

Ovintiv signed an agreement to deliver a half-million tons of gas in the liquid form per year to Pembina Pipeline (Calgary), which will deliver it through the proposed Cedar LNG facility. Ovintiv is a subsidiary of Pembina.

"It provides Ovintiv, one of Canada's largest natural gas producers, with access to additional export markets, complementary to the company's existing portfolio of natural gas transportation arrangements," the company said. "Export from the west coast of Canada offers the shortest shipping distance to Asian LNG markets from North America."

Joint venture partners Pembina Pipeline and the indigenous Haisla Nation announced the final investment decision (FID) on the Cedar LNG project last summer. The facility will consist of a floating liquefied natural gas (FLNG) facility in Kitimat in British Columbia, with a nameplate capacity of about 3.3 million metric tons per annum (MTPA).

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more about Cedar LNG--including capacities, investment values and necessary equipment--from a detailed project report.

Various interconnections will tie into the Coastal Gaslink pipeline network, which will deliver gas to the Cedar LNG facility.

By the Numbers

• 19 billion cubic feet per day in Canadian gas production
• 3.3 MTPA expected from Cedar LNG
• 12-year supply agreement reached

Canada Winning the West Coast Race

Cedar LNG is part of an export goal that's found renewed importance with sweeping tariff threats from U.S. President Donald Trump. British Columbia Prime Minister David Eby said that while Trump works to insult his trading partners, Canada is a reliable and a potential supplier to the Asian economies, some of which have few energy resources of their own.

Canadian Prime Minister Mark Carney, meanwhile, aims to halve the amount of U.S. trade given the acrimony stoked by Trump's tariff policies. Another facility, LNG Canada, already is delivering gas to Asian economies, establishing Canada is the only North American country with the infrastructure needed for LNG exports from the West Coast.

Ovintiv added that it was proud to be part of the trade diversification spree.

"We are excited to partner with Pembina to supply low-cost Canadian natural gas to overseas markets, supporting energy security and global emissions reductions," said Meghan Eilers, an executive vice president of midstream and marketing for Ovintiv.

Despite Friction, Canada Still Supplies U.S. Market

While Canadian leaders are looking to expand non-U.S. trade, the country remains a net exporter of natural gas to the U.S. On Monday, IIR Energy reported that weekend Canadian volumes of about 8 billion cubic feet per day were well-above year-ago levels, helping to ensure grid stability amid a sweeping cold-weather pattern.

Canada, with an average production of about 19 billion cubic feet per day so far in 2025, is the fifth-largest natural gas producer in the world. Canadian exports to the U.S. on Tuesday were closer to 6.2 billion cubic feet, though that's still 7.5% above year-ago levels.

A trade-dependent Canadian economy, meanwhile, is feeling the pinch from tariffs imposed by the United States, its largest trading partner. Acknowledging the impact, the Bank of Canada last week nevertheless left its key lending rate unchanged at 2.25%.

"Since the start of the year, there have been significant job losses in trade-sensitive sectors," Tiff Macklem, the bank's governor, said last week. "But in recent months, employment in these sectors has been more stable, so gains in other sectors--particularly services--have boosted overall employment."

Key Takeaways

• Canada beating the U.S. in the West Coast LNG race.
• Canadian gas helped support demand during recent cold snap.
• The nation is working to cut U.S. trade levels.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).