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Released November 06, 2025 | SUGAR LAND
Written for Industrial Info Resources by Daniel Graeber (Sugar Land, Texas)
SUMMARY
Malaysian energy company Petronas secured a 20-year offtake agreement from the Cedar LNG facility planned for British Columbia.
Petronas Taps Canadian LNG Supplies
Following a trade-related tour of Asia from Canadian Prime Minister Mark Carney, the developers of the planned Cedar LNG facility in British Columbia reached a supply deal with Malaysian energy company Petroliam Nasional Berhad, better known as Petronas (Kuala Lumpur).
Petronas on Wednesday signed a 20-year agreement with Pembina Pipeline Corporation (Calgary, Alberta) to secure 1 million metric tons per annum (MTPA) of gas in the liquid form from the Cedar LNG facility.
Stu Taylor, the corporate development officer at Pembina, said the agreement underpins the rationality of the project.
"This agreement further validates Cedar LNG and highlights the strong demand for global export capacity given the clear advantages of Canadian West Coast LNG, including competitively priced feedstock and advantaged shipping distances to Asian markets," he said.
Joint venture partners Pembina 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 MTPA.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project report.
Various interconnections will tie into the Coastal Gaslink pipeline network that will deliver gas to the Cedar LNG facility. The FLNG unit will be powered largely by renewable energy, with a completion date set for 2028.
A Victory for Canada
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.
Petronas is a major investor in the first phase of LNG Canada, another export artery in British Columbia. The Indo-Pacific region is Canada's second-largest trading partner, after the U.S., with bilateral trade valued at around $185 billion annually.
Canada's Economy is Under Pressure
On Tuesday, Carney unveiled his first federal budget since taking the premiership, laying out his vision to make Canada the strongest economy in the G7, while at the same time insulating Canadian markets from U.S. tariff pressure. Nearly US$200 billion in spending will add considerably to Canada's national debt, however.
The prime minister already threw his support behind a handful of nation-building projects, from nuclear reactors to LNG.
Canada's economy is under pressure, however. Last week, the Bank of Canada said the economy contracted by 1.6% during the second quarter amid low exports and a weak investment climate. U.S. tariffs added to bilateral trade uncertainty and had "severe" impacts on autos, steel, aluminum and lumber.
The bank cut its lending rate by 25 basis points to 2.25%. Inflation is running at around 3% annually, above its 2% target rate.
By the Numbers
- 20-year offtake agreement for Cedar LNG
- 1 million metric tons of LNG per year will go to Malaysia
- $185 billion in trade between Canada and ASEAN members
Key Takeaways
- The deal is a win for Canada's trade diversification strategy
- The government is already backing West Coast LNG facilities
- Canada's economy is under pressure from U.S. tariffs
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
