In a significant move for Canada's liquefied natural gas (LNG) sector, Calgary-based Ovintiv Inc. has entered into a long-term agreement to become a customer of the proposed Cedar LNG project. The deal, announced on December 16, 2025, provides a crucial anchor for the planned export facility in British Columbia.
A Strategic Commitment for Cedar LNG
The agreement sees Ovintiv, a major North American producer of natural gas, oil, and natural gas liquids, committing to a substantial volume of the LNG that Cedar LNG aims to produce. This long-term offtake commitment is a pivotal milestone for the project, providing it with a stable foundation of demand as it progresses toward a final investment decision.
The Cedar LNG project is a partnership between the Haisla Nation and Pembina Pipeline Corporation. It is designed as a floating LNG export facility located in Kitimat, B.C., within the traditional territory of the Haisla Nation. The project aims to leverage Canada's abundant natural gas resources and growing global demand for cleaner-burning fuels.
Context and Significance for the Canadian Energy Sector
This customer agreement represents a vote of confidence in both the Cedar LNG project and the broader Canadian LNG industry. For Ovintiv, securing access to LNG export capacity aligns with its strategy to connect its North American natural gas production to international markets, where prices are often higher and demand is robust, particularly in Asia.
The announcement comes at a time when global energy security concerns have heightened the focus on reliable sources of natural gas. Canadian LNG projects like Cedar LNG are positioning themselves as lower-carbon, ethically sourced alternatives to supplies from other global regions. The involvement of the Haisla Nation as an equity owner also sets a precedent for Indigenous-led economic development in the resource sector.
Next Steps and Project Outlook
With a foundational customer now secured, the Cedar LNG partnership can advance other critical work, including finalizing engineering plans, securing additional regulatory approvals, and lining up financing. The long-term agreement with an established producer like Ovintiv de-risks the project for other potential partners and lenders.
While an exact timeline for construction was not detailed in the announcement, reaching a final investment decision is the next major hurdle. The commitment from Ovintiv, announced on December 16, 2025, is a definitive step forward for a project that promises to create jobs, generate economic benefits for Indigenous and local communities, and open new markets for Canadian natural gas.
