LNG
Enabling a cleaner energy future
As countries around the world look to address challenges regarding energy security and reducing emissions, Canadian natural gas is part of this solution. Canadian natural gas is abundant, affordable, responsibly produced and clean.
When cooled, liquefied natural gas (LNG), can be safely shipped via carrier to international markets including Asia and Europe. There LNG is helping meet energy demand and displacing more carbon-intense sources like coal. With global demand for LNG on the rise, ARC is well-positioned to participate in this opportunity and help supply the energy the world needs.
Our LNG strategy
Connecting our low-emissions energy to key markets at the lowest cost
Top-decile ESG performance
- One of the lowest GHG emissions intensities in Canada
- Equitable Origin certified responsible production base
- Sustainability practices embedded in all aspects of our business
Low-cost production
- Owned-and-operated infrastructure provides greater control of our cost structure
- Disciplined focus on efficiency and operational excellence
- Marketing arrangements are structured to minimize transportation costs
Connectivity to key markets
- Pipeline capacity to five key markets in North America
- Pipeline access to LNG export facilities enables exposure to international pricing
- Market diversification maximizes the value on every molecule produced
Investment-grade credit rating
A trusted partner with scale and financial capacity to enable long-term supply agreements.
Diversified transportation portfolio
Our natural gas transportation portfolio provides access to the Canadian west coast and the US Gulf Coast, enabling our participation in the North American LNG export market.
Cheniere Energy
In Q1 2022, ARC announced a long-term natural gas supply agreement with Cheniere's Corpus Christi Stage III.
LNG Canada Participant
In Q3 2021, ARC announced a long-term natural gas supply agreement with an LNG Canada participant.
Cedar LNG
In March 2023, ARC announced it had signed a Memorandum of Understanding with Cedar LNG for a long-term liquefaction services agreement.
LNG supply agreements
Supported by our market diversification efforts, we have entered into long-term supply agreements on the Canadian west coast and the US Gulf Coast.
Participant
Volumes: 150 MMcf/day
Term: Long-term
Pricing: Premium to Western Canadian pricing
Anticipated Start Date: Start-up of LNG Canada
Volumes: 140,000 MMBtu/day
Term: 15 years
Pricing: Platts JKM1 (Japan Korea Marker)
Anticipated Start Date: Start-up of Corpus Christi Stage III Train 7
(1) Platts JKMTM (Japan Korea Marker), after deductions for fixed LNG shipping costs and a fixed liquefaction fee.
Memorandum of Understanding
Signed March 2023
Volumes: ~200 MMcf/day
Term: ~20 years
Pricing: Targeting Platts JKM1 (Japan Korea Marker)
Anticipated Start Date: Start-up of Cedar LNG
(1) Platts JKMTM (Japan Korea Marker), after deductions for fixed LNG shipping costs and a fixed liquefaction fee.
Related
