(In April 4 story, corrects headline to say ARC Resources ( AETUF ) will

supply natural gas to Pembina's Cedar LNG project for

liquefication, not that it will supply LNG to Pembina)

April 4 (Reuters) - Pembina Pipeline ( PBA ) said on

Thursday it has entered into an agreement with Canadian firm ARC

Resources ( AETUF ), which will deliver about 200 million cubic

feet (mmcf) per day of natural gas for liquefication to the

Cedar LNG project.

Under the agreement, ARC Resources ( AETUF ) will supply natural gas

through the Coastal GasLink from its production base in Montney,

British Columbia, for a term of 20 years commencing in 2028.

Pembina, which runs the project jointly with Haisla Nation,

said the total estimated cost of Cedar LNG, including interest

and transaction costs, is about $4 billion. The partners are yet

to make a final investment decision (FID), which is expected by

mid-2024.

Cedar LNG is pursuing asset-level debt financing for

about 60% of the total project cost, the company said.

Subject to a positive FID, the project is expected to

generate annual run-rate adjusted core profit of $200 million to

$260 million.

Canada-based Pembina also entered a bridging agreement

with Cedar LNG for 1.5 million tonnes per annum of LNG capacity.