By The Canadian Press

Ovintiv signs on to Cedar LNG project as long-term customer

Dec 16, 2025 | 9:42 AM

CALGARY — Ovintiv Inc. has signed on as a long-term customer for the Cedar LNG project that Pembina Pipeline Corp. and the Haisla Nation are constructing on the West Coast.

A 12-year agreement will see 500,000 tonnes of gas per year shipped across British Columbia from Ovintiv’s natural gas fields to the floating liquefied natural gas facility in Kitimat. There, the gas will be chilled into a liquid state so that it can be loaded on specialized tankers and sold in Asia.

Pembina is to provide pipeline transportation and liquefaction capacity to Ovintiv and, in exchange, lock down a stable revenue stream.

“Ovintiv is one of the largest and most innovative liquids-rich natural gas producers in Canada’s Montney play, and Pembina is pleased to further support their growing business by providing access through Cedar LNG to diversified, higher value global markets for their product,” said Stu Taylor, Pembina’s senior vice-president and corporate development officer.

Denver-based Ovintiv changed its name from Encana and moved its headquarters from Calgary in 2020.

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It has been building up its position in the Montney formation, which stretches through parts of northeastern B.C. and northwestern Alberta, most recently through its planned $3.8-billion acquisition of NuVista Energy Ltd.

“Today’s announcement marks a significant advancement in our strategy to expand market access and maximize the profitability of our Montney gas resource through participation in global LNG markets,” said Meghan Eilers, executive vice-president of midstream and marketing at Ovintiv.

The Haisla Nation owns 50.1 per cent of Cedar LNG, with Pembina Pipeline holding the rest. The facility will have more than three million tonnes per year of capacity.

Pembina had been looking for producers to take over its share of the plant. Last month, it announced a 20-year deal with Malaysia’s Petronas for one million tonnes of capacity.

That means with the Ovintiv deal, the full 1.5 million tonnes Pembina had been looking to remarket has now been spoken for.

Construction on Cedar LNG is trending on time and on budget, with a late 2028 in-service date, Pembina said. Next year is expected to be the most capital-intensive year for the US$4-billion project, with construction on the floating LNG vessel continuing.

In 2026, the partners also aim to finish the substation and mooring foundations at the marine terminal site, begin installing a transmission line and complete a pipeline linking to the facility.

This report by The Canadian Press was first published Dec. 16, 2025.

Companies in this story: (TSX:PPL)

Lauren Krugel, The Canadian Press