Exxon Mobil Asia Pacific Pte. Ltd. has agreed to buy all of ARC Resources’ LNG offtake from the Cedar LNG Project—1.5 million tonnes per annum—for the entirety of Arc’s liquefaction tolling services with Cedar LNG Partners LP. 

Exxon will purchase the LNG at international pricing, beginning at the start of commercial operations from the Kitimat, British Columbia, Canada-based Cedar LNG facility in late 2028.

The agreement is Exxon’s first long-term offtake agreement on Canada’s Pacific Coast, giving Exxon “advantaged access to Asian LNG markets,” said Exxon Mobil Asia Pacific Vice President Global LNG Marketing Andrew Barry.

“We look forward to working with ARC Resources, one of Canada's largest and most experienced natural gas producers, as we continue to expand and diversify ExxonMobil's LNG portfolio and provide the lower-emissions energy the world needs," said Barry.

"Today, we have reached a significant milestone in our strategy to diversify and expand margins through participation in the global LNG market. Through this agreement, we have achieved our target of linking approximately 25% of our future natural gas production to international pricing," said ARC Resources President and CEO Terry Anderson.

ARC Resources signed three other long-term sale and purchase agreements to supply LNG at international pricing.

ARC agreed to supply 140,000 MMBtu/d of natural gas to Cheniere’s Corpus Christi Stage III expansion with Platts Japan Korea Marker pricing and 140,000 MMBtu/d to Cheniere's SPL Expansion Project with Dutch Title Transfer Facility pricing.

ARC also agreed to long-term liquefaction tolling services with Cedar LNG for the delivery of 200 MMcf/d of natural gas for liquefaction.

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