A cross-border Energy & Natural Resources team led by partner Luke Burns advised on the 1.5 million tonnes per annum (mtpa) 20-year tolling agreement under which ARC would receive LNG on a tolling basis from the project. The tolling agreement is between ARC and the project company, which is jointly owned by Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA) and the Haisla Nation.
“This agreement is an important step in the continued development of the Cedar LNG Facility, and in the supply of Canadian natural gas to international markets. We were honored to represent ARC on this deal, and look forward to continuing to support ARC in their efforts to place this LNG with one or more buyers,” said Burns, who also noted that the second stage of Reed Smith’s engagement will involve negotiations to sell ARC's LNG delivered from the project to one or more commercial offtakers on a “free-on-board” basis.
Owing to the complex nature of the agreement, Burns assembled an experienced, cross-border multidisciplinary team of Reed Smith colleagues that included partner Mike Adamson advising on shipping matters and partner Matt Lea advising on finance matters as well as associates Christos Antoniou and Dylan Weber.
For more information about the deal, please see ARC’s news release.
About ARC
ARC Resources Ltd. is a pure-play Montney producer and one of Canada's largest dividend-paying energy companies, featuring low-cost operations and leading ESG performance. ARC's investment-grade credit profile is supported by commodity and geographic diversity and robust risk management practices around all aspects of the business.
About Reed Smith
Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, we deliver smarter, more creative legal services that drive better outcomes for our clients. Our deep industry knowledge, long-standing relationships and collaborative structure make us the go-to partner for complex disputes, transactions and regulatory matters.
For more information, visit reedsmith.com.
