Mr. Stu Taylor reports

PEMBINA AND PETRONAS ENTER LONG-TERM AGREEMENT FOR CEDAR LNG CAPACITY

Pembina Pipeline Corp. and Petroliam Nasional Berhad have signed a 20-year agreement for 1.0 million tonnes per annum (mtpa) of Pembina's liquefaction capacity at the Cedar LNG facility by their subsidiaries.

The agreement is a synthetic liquefaction service structure for 1.0 mtpa of capacity, under which Pembina will provide transportation and liquefaction capacity to Petronas LNG Ltd over a 20-year term. It enables Petronas to access an additional natural gas export outlet for its sizeable Canadian upstream investment, while providing Pembina with a stable long-term, take-or-pay revenue stream and the potential for value enhancement. The agreement also demonstrates the shared commitment of both Pembina and Petronas to realize the long-term potential of Canadian LNG (liquid natural gas), supporting energy security and advancing the transition to cleaner fuels in Asia.

"Petronas is a global LNG industry leader and one of the largest gas producers in Canada. This agreement is an extension of our existing relationship with them and an important development in Pembina's ongoing expansion of its export business. This agreement further validates Cedar LNG and highlights the strong demand for global export capacity given the clear advantages of Canadian West Coast LNG, including competitively priced feedstock and advantaged shipping distances to Asian markets," said Stu Taylor, Pembina's senior vice-president and corporate development officer. "It also demonstrates Pembina's commitment to delivering growth and executing our strategy within the company's financial guardrails."

"This milestone reflects Petronas's long-standing commitment to our investment in Canada and our continued effort to fortify our global LNG supply portfolio. We welcome this partnership with Pembina and the Cedar LNG project, as it underscores Petronas's role as an integrated energy player and demonstrates our dedication to responsibly monetize our gas resources. This arrangement improves supply diversity and enhances reliability of supply for customers, while reinforcing our steadfast commitment to deliver reliable, lower-carbon energy solutions to meet Asia's growing energy needs," said Shamsairi M. Ibrahim, vice-president of LNG marketing and trading, Petronas gas and maritime business.

Pembina previously signed a 20-year take-or-pay liquefaction tolling service agreement for 1.5 mtpa of LNG to support the final investment decision on Cedar LNG in June, 2024, and ultimately maintain key project timing and economic parameters, with the expectation of remarketing the capacity at a later stage. The agreement with Petronas marks a significant first step in Pembina's remarketing efforts. Pembina expects to reach definitive agreements for the remaining 0.5 mtpa of capacity by the end of 2025.

The $4-billion (U.S.) (gross) Cedar LNG project remains on time and on budget, with an expected in-service date in late 2028.

About Cedar LNG

Cedar LNG is a partnership between the Haisla Nation and Pembina Pipeline to develop a floating liquefied natural gas facility in Kitimat, B.C., Canada, within the traditional territory of the Haisla Nation. Strategically positioned to leverage Canada's abundant natural gas supply and B.C.'s LNG infrastructure, the Cedar LNG facility will be powered by renewable electricity from B.C. Hydro, making it one of the lowest-carbon intensity LNG facilities in the world.

About Pembina Pipeline Corp.

Pembina Pipeline is a leading energy transportation and mid-stream service provider that has served North America's energy industry for more than 70 years. Pembina owns an extensive network of strategically located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure, and logistics services, and an export terminals business. Through the company's integrated value chain, the company seeks to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit the company's customers, investors, employees and communities.

Purpose of Pembina: The company delivers extraordinary energy solutions so the world can thrive.

Pembina is structured into three divisions: pipelines division, facilities division, and marketing and new ventures division.

Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively.

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