- Pembina Pipeline Corp. (TSX:PPL) is speaking with China’s Sinopec on a liquefied natural gas offtake agreement and equity stake in its Cedar project
- The news was first reported by Reuters, which quoted Cedar and Pembina’s spokesperson that commercial negotiations with multiple other customers continue as Pembina plans to assign its capacity to a third party
- Though the talks are not public, it has been reported that Sinopec wants to purchase 1.5 million tons annually of Cedar LNG production under an offtake owned by Pembina
- Pembina Pipeline Corp. opened trading at C$48.75 per share
Pembina Pipeline Corp. (TSX:PPL) is speaking with China’s Sinopec on a liquefied natural gas (LNG) offtake agreement and equity stake in its Cedar project.
The news was first reported by Reuters, which quoted Cedar and Pembina’s spokesperson, Shawn Roth who said, “Commercial negotiations with multiple other customers continue to progress as Pembina plans to assign its capacity to a third party.”
Though the talks are not public, it has been reported that Sinopec wants to purchase 1.5 million tons annually of Cedar LNG production under an offtake owned by Pembina.
The Cedar project is a joint venture between Haisla First Nation and Pembina and would be one of Canada’s first LNG export terminals.
At a projected cost of roughly C$4 billion, Cedar would produce 3 million metric tons of LNG per annum (MTPA), once complete by 2028, should a final investment decision later this year come to fruition.
Sinopec is the world’s largest refiner by capacity and acquired Canadian upstream projects from Petronas in 2014, including gas fields in northeastern British Columbia.
Pembina Pipeline Corp. is a transportation and midstream service provider that has been serving North America’s energy industry for more than 65 years. It owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in Western Canada. The company also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business; and is growing an export terminals business.
Pembina Pipeline Corp. (TSX:PPL) opened trading at C$48.75 per share. Pembina stock has risen 7.12 per cent year to date and is 12.79 per cent higher than this time, last year.
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