ARC Resources Secures LNG Supply Deal with ExxonMobil
Deal News | Mar 18, 2025 | Reed Smith
ARC Resources has signed a significant LNG supply agreement with ExxonMobil, in which ExxonMobil's EMLAP division will purchase 1.5 million tonnes per annum (MTPA) of LNG from ARC's Cedar LNG Project. This agreement is set at international LNG pricing and is contingent on the commencement of commercial operations of the Cedar LNG Facility, anticipated to begin by late 2028. Reed Smith, the advisory firm, played a crucial role in structuring this deal and had previously represented ARC in securing a long-term liquefaction tolling services agreement with Cedar LNG Partners LP. This partnership marks an essential development in ARC's strategic initiative, underscoring the continuity in Reed Smith's engagement with ARC as they leverage their expertise to finalize key components of the agreement.
Sectors
- Energy
- Legal Services
Geography
- Canada – ARC Resources and the Cedar LNG Project, a partnership including the Haisla Nation and Pembina Pipeline Corporation, are based in Canada.
- United States – ExxonMobil, the buyer in the LNG supply agreement, is a major U.S.-based multinational corporation.
Industry
- Energy – The article focuses on an LNG supply agreement involving major energy companies, highlighting activities in the natural gas industry.
- Legal Services – Reed Smith's role as an advisor and legal representative for ARC Resources in the LNG supply and related agreements emphasizes the legal services sector's involvement.
Financials
- 1.5 million tonnes per annum (MTPA) – Quantity of LNG that ExxonMobil's EMLAP division will purchase annually under the agreement.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ARC Resources | Seller | Company | Canadian energy company engaged in the supply of LNG from the Cedar LNG Project. |
| ExxonMobil | Buyer | Company | American multinational oil and gas corporation agreeing to purchase LNG from ARC. |
| Reed Smith | Legal Advisor | Company | International law firm advising ARC Resources on the LNG supply agreement and related transactions. |
| Cedar LNG Partners LP | Partnership | Company | A joint partnership between the Haisla Nation and Pembina Pipeline Corporation engaged in the liquefaction tolling services for the LNG project. |
| Haisla Nation | Partner | Government | Indigenous community in Canada partnering in the Cedar LNG Project. |
| Pembina Pipeline Corporation | Partner | Company | Leading Canadian pipeline operator partnering in the Cedar LNG Project. |
| Luke Burns | Partner, Legal Advisor | Person | Partner at Reed Smith overseeing the advisory role in the agreement. |
| Mike Adamson | Partner, Legal Advisor | Person | Partner at Reed Smith involved in advising on transportation-related matters. |