Exxon Mobil to receive LNG from ARC Resources
ARC Resources announced on Tuesday that it had signed a long-term liquefied gas supply contract with a division of Exxon Mobil.
In recent years, global LNG demand has increased amid a move towards cleaner energy. The U.S. is now a major supplier of both Europe and Asia.
ExxonMobil LNG Asia Pacific has announced that it will buy all of ARC’s LNG from the Cedar LNG Project, which is approximately 1.5 million tonnes per year (mtpa), ARC said.
Cedar LNG, a project in partnership with the Haisla Nation, located on Canada's West Coast and Pembina Pipeline, will begin commercial operations by 2028. Its capacity is 3.3 million tonnes annually (mtpa).
The $4 billion oil and gas pipeline project was announced by Pembina Pipeline last year.
In 2023, ARC will sign a 20-year contract with Cedar LNG to supply natural gas and liquefy it. The project was to produce 1.5 million tonnes of LNG equivalent to 200 million cubic foot per day of natural gas.
This agreement gives ExxonMobil an advantaged position in Asian LNG markets, as it establishes ExxonMobil’s first long-term purchase position on Canada’s Pacific Coast, said Andrew Barry.
(source: Reuters)
