05:10 PM EDT, 04/04/2024 (MT Newswires) -- ARC Resources ( AETUF ) on Thursday said it reached an agreement to supply Cedar LNG Partners with 200-million cubic feet of natural gas per day for 20 years.

The agreement takes effect when Cedar LNG, a joint venture of the Haisla Nation and Pembina Pipeline ( PBA ) begins commercial operations, expected in 2028, and is subject to a favorable final investment decision by the partners to build the project on British Columbia's northern coast.

"Today, we take another step forward in supplying low-cost Canadian energy to our partners overseas, bolstering energy security and helping to reduce emissions world-wide. Located on Canada's West Coast, Cedar LNG will produce some of the lowest-carbon, cost-competitive LNG with one of the shortest shipping routes to key Asian markets.," ARC chief executive Terry Anderson said in a release.

ARC also said it reached a non-binding Heads of Agreement with "an investment-grade rated company with extensive experience in the LNG value chain" for offtake of the LNG.

ARC shares closed up C$0.42 to C$25.33 on the Toronto Stock Exchange.