ARC Resources Ltd. (TSX:ARX), a major natural gas producer in B.C., has inked a second agreement with Cheniere Energy (NYSE:LNG) in the U.S. to supply an additional 140,000 MMBtus per day of natural gas for Cheniere’s Sabine Pass LNG expansion.
As BIV News reported last year, two Alberta natural gas producers – ARC and Tourmaline Oil (TSX:TOU) –inked agreements with Cheniere to move natural gas produced in Alberta and B.C. to Louisiana via the North American pipeline system to supply Cheniere’s Sabine Pass LNG projects. Cheniere is expanding its Sabine Pass LNG terminal.
Tourmaline and ARC each signed agreements last year with Cheniere to supply the American company with 140,000 MMBtus (million British thermal units) per day of natural gas from Alberta and B.C.
Both companies are major producers in B.C.’s Montney formation in Northeastern B.C. ARC Resources is currently building a new $740 million natural gas processing plant in Northeastern B.C. -- the Attachie project.
ARC Resources announced today that it has signed a second 15-year agreement with Cheniere to provide an additional 140,000 MMBtus per day. The company confirmed some of the natural gas will come from its operations in B.C.
"Our transportation portfolio moves gas from both our B.C. and Alberta assets to markets in the United States and will include Cheniere in the future," the company said in a statement to BIV.
“This agreement will enable Cheniere to deliver increased quantities of Canadian natural gas to Europe, where energy security has never been more important," said Cheniere CEO Jack Fusco.
"With today's announcement, we are advancing the export of low-cost, low-emission Canadian natural gas to consuming markets in Europe," said ARC CEO Terry Anderson.
"We are pleased to further our long-term partnership with Cheniere and demonstrate the critical role Canadian energy has to play on the world stage. This marks ARC's second long-term LNG agreement linked to foreign indices and is an important milestone in the execution of our market diversification strategy."