Ovintiv continues to align upstream execution with long-term market access after signing a 12-year agreement with Pembina for 0.5 million tonnes per annum (mtpa) of liquefaction capacity at the Cedar LNG facility, with commercial operations expected in late 2028. The agreement provides Ovintiv with direct exposure to global LNG markets while strengthening the value of its core Canadian natural gas assets.
That strategy is already visible in Ovintiv’s 2025 Canadian drilling program. Year-to-date, the company has spud 87 wells in Canada, with activity concentrated in British Columbia (46 wells) and Alberta (34 wells)—the heart of the Montney and Deep Basin fairways feeding future LNG supply.
Drilling activity remains highly focused in Ovintiv’s core operating areas, led by Elmworth (26 wells) and Sunrise (23 wells), followed by Dawson Creek (10 wells), Tower Lake (8 wells), and Wembley (5 wells). The concentration of activity in these fields underscores Ovintiv’s pad-based development approach, designed to lower costs, improve drilling efficiency, and accelerate time to first production.
Operational execution in 2025 has been anchored by Precision Drilling, with four high-utilization rigs driving the majority of activity. The most active rigs include Precision 535 (25 wells), Precision 520 (21 wells), Precision 521 (18 wells), and Precision 534 (18 wells), reflecting a disciplined, repeatable drilling program built around proven contractors and equipment.
As Cedar LNG advances toward startup, Ovintiv’s combination of concentrated drilling, pad development, and long-term LNG market access positions the company to maximize netbacks from its Montney gas resource while reducing exposure to North American price volatility. The integration of upstream execution with downstream export capacity highlights a broader shift among Canadian producers toward globally competitive gas strategies.
