China's Sinopec is in talks to buy gas and a stake in Canada's Cedar LNG

China's Sinopec is in talks with Pembina Pipeline Corp over an LNG off-take agreement and a stake in the Canadian company's proposed Cedar LNG project.

Sinopec wants to agree on the acquisition of 1.5 million tons of LNG (about 2.1 bcm) annually owned by Pembina.

In April, Cedar LNG announced separate 20-year contracts with ARC Resources and Pembina for 1.5 million tons of LNG per year each. It is known that Pembina is in commercial negotiations with many customers and plans to transfer its capacity to a third party.

A joint venture between Haisla First Nation and Pembina, Cedar LNG will be one of Canada's first LNG export terminals worth approximately $4 billion.

Cedar is expected to produce 3 million tons of LNG (over 4.1 bcm) per year upon completion in 2028. The project is currently awaiting a final investment decision, which is expected by mid-2024.