Ovintiv signs on to Cedar LNG project as long-term customer

In this March 29, 2013 file photo, workers tend to a well head during a hydraulic fracturing operation at an Encana, now Ovintiv, gas well outside Rifle, in western Colorado.

Ovintiv Inc. has signed on as a long-term customer for the Cedar LNG project that Pembina Pipeline Corp. and the Haisla Nation are constructing on the West Coast.

A 12-year agreement will see 500,000 tonnes of gas per year shipped from Ovintiv’s natural gas fields across British Columbia to the floating liquefied natural gas facility in Kitimat.

There, the gas will be chilled into a liquid state so that it can be loaded on specialized tankers and sold in Asia.

Last month, Pembina announced a 20-year deal with Malaysia’s Petronas for one million tonnes per year of capacity at Cedar LNG, which is set to start up in late 2028.

Denver-based Ovintiv changed its name from Encana and moved its headquarters from Calgary in 2020.

It has been building up its position in the Montney formation, which stretches through parts of northeastern B.C. and northwestern Alberta, most recently through its planned $3.8-billion acquisition of NuVista Energy Ltd.

This report by The Canadian Press was first published Dec. 16, 2025.