A Reed Smith energy transactions team led by partner Luke Burns has advised ARC Resources Ltd. (ARC) in the negotiation and signing of a long-term sale and purchase agreement with ExxonMobil LNG Asia Pacific (EMLAP), an ExxonMobil affiliate, for the supply of liquefied natural gas (LNG).
Under the agreement, EMLAP will purchase all of ARC's LNG offtake from the Cedar LNG Project – approximately 1.5 million tonnes per annum (MTPA) – at international LNG pricing. The agreement commences with commercial operations at the Cedar LNG Facility, expected in late 2028, and continues for the term of ARC's liquefaction tolling services agreement with Cedar LNG Partners LP.
This milestone deal represents the second phase of Reed Smith's strategic representation of ARC with respect to the Cedar LNG Project, following the firm's successful representation of ARC on the underlying long-term liquefaction tolling services agreement with Cedar LNG, a partnership between the Haisla Nation and Pembina Pipeline Corporation.
"This offtake agreement brings our work full circle. Having advised ARC on the Cedar LNG tolling agreement previously, we're pleased to support this supply agreement with a premier global energy player that will see this LNG delivered to an international market. It's gratifying to see both pieces of this puzzle come together," said Luke Burns, partner at Reed Smith.
The Reed Smith team advising on this complex transaction consisted of partner Luke Burns and partner Mike Adamson, who provided counsel on transportation-related matters.
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