TSX:ARX - Post Discussion
Post by
retiredcf on Apr 05, 2024 9:10am
RBC
April 4, 2024
ARC Resources Ltd.
Announces LNG agreements with Cedar LNG
TSX: ARX | CAD 25.33 | Outperform | Price Target CAD 26.00
Sentiment: Neutral
ARX announced it has entered into a long-term liquefaction tolling services agreement with the proposed Cedar LNG project and entered into a non-binding HOA (Heads of Agreement) with an investment-grade rated company for the associated LNG offtake. The terms of the liquefaction agreement will deliver 200 mmcf/d (roughly half of the project) of natural gas for a term of 20 years commencing in H2/28. The non-binding HOA outlines the terms of the anticipated sale and purchase agreement (SPA) delivering 200 mcf/d for a 20 year term, commencing at the start of the project and realizing global pricing. The agreements are anticipated to be finalized by year-end 2024. See more on ARX and the proposed Cedar LNG project - here, more on the Montney and Canadian LNG - here and our recent note on NE BC activity levels here. See more on Cedar LNG and the project partner Pembina from Robert Kwan - here. ARC Resources remains on our RBC Global Energy Best Ideas List.
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