Ovintiv ( OVV) said post-market Monday it signed a 12-year agreement for 500,000 metric tons/year of liquefaction capacity at Pembina Pipeline's ( PBA) proposed Cedar LNG facility in British Columbia, anticipated in late 2028, providing direct access to Asian liquefied natural gas markets.

The announcement "marks a significant advancement in our strategy to expand market access and maximize the profitability of our Montney gas resource through participation in global LNG markets," Ovintiv ( OVV) Executive VP of Midstream and Marketing Meghan Eilers said.

The $4 billion Cedar LNG project is a floating liquefied natural gas facility with a nameplate capacity of 3.3 million metric tons/year located in the traditional territory of the Haisla Nation, which owns a 50.1% equity stake compared to Pembina's ( PBA) 49.9% share.