Ovintiv Enters Into Agreement for Cedar LNG Capacity

Executive Summary

• Ovintiv entered into a 12‑year agreement with Pembina Pipeline’s subsidiary for up to 0.5 mtpa of liquefaction capacity at the Cedar LNG facility.
• The agreement provides Ovintiv access to export markets, particularly Asia, once Cedar LNG begins commercial operations in late 2028.
• This partnership is positioned to enhance the profitability of Ovintiv’s Montney gas resource by adding a long‑term, low‑cost LNG export route.

Key Details

• Parties: Ovintiv Inc. (NYSE: OVV) and a subsidiary of Pembina Pipeline Corp. (TSX: PPL; NYSE: PBA).
• Term: 12 years, commencing with commercial operations at Cedar LNG (anticipated late 2028).
• Capacity: Up to 0.5 million tonnes per annum (mtpa) of liquefaction capacity.
• Purpose: Enables Ovintiv to export Canadian natural gas to Asian markets via the west coast, offering the shortest shipping distance from North America.
• Strategic Rationale: Expands market access for Montney gas, diversifies revenue streams, and supports global energy security and emissions reduction goals.
• Key Quote: “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, EVP of Midstream and Marketing, Ovintiv.

Notable Quotes

“We are excited to partner with Pembina to supply low‑cost Canadian natural gas to overseas markets, supporting energy security and global emissions reductions.” – Meghan Eilers, EVP of Midstream and Marketing, Ovintiv.