ARC Resources Ltd. has announced the signing of a long-term sale and purchase agreement with ExxonMobil LNG Asia Pacific, an ExxonMobil affiliate, for the supply of liquefied natural gas.
Under the terms of the Agreement, EMLAP will purchase ARC’s entire LNG offtake from the Cedar LNG Project, amounting to approximately 1.5 million tonnes per annum, at international LNG pricing. The Agreement will take effect with the commencement of commercial operations at the Cedar LNG Facility, which is expected in late 2028, and will remain in place for the duration of ARC’s liquefaction tolling services agreement with Cedar LNG Partners LP.
The Agreement marks a significant milestone in ARC’s strategy to diversify its market reach and enhance margins through participation in the global LNG sector. By securing this long-term commitment, the Company has achieved its goal of linking approximately 25 percent of its future natural gas production to international pricing.
Through this partnership, ExxonMobil gains its first long-term LNG offtake position on Canada’s Pacific Coast, providing advantaged access to Asian LNG markets. The collaboration with ARC, one of Canada’s largest and most experienced natural gas producers, aligns with ExxonMobil’s strategy to expand and diversify its LNG portfolio while supplying lower-emissions energy to meet global demand.
Over the past three years, ARC has actively expanded its exposure to international LNG pricing through a series of long-term agreements. In 2022, the Company entered into an agreement to supply 140,000 MMBtu per day of natural gas to Cheniere’s Corpus Christi Stage III expansion, with pricing linked to Platts JKM™ (Japan Korea Marker). In 2023, ARC announced a second agreement with Cheniere to supply an additional 140,000 MMBtu per day to Cheniere’s SPL Expansion Project, with pricing tied to the Dutch Title Transfer Facility (“TTF”).
This SPA builds on ARC’s recent liquefaction tolling services agreement with Cedar LNG, a partnership between the Haisla Nation and Pembina Pipeline Corporation. Under this agreement, ARC will deliver approximately 200 MMcf per day of natural gas to the Cedar LNG Project for liquefaction, further advancing its commitment to international LNG markets.
For more information visit www.arcresources.com
