Reports related to this article:
Project(s): View 8 related projects in PECWeb
Plant(s): View 8 related plants in PECWeb
Released April 04, 2024 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--February and March represented two of the four highest monthly averages on record for Western Canadian natural gas production, and drillers in the region are optimistic 2024 will prove a banner year for the industry, despite an ongoing weakness in natural gas prices. The Canadian Association of Petroleum Producers believes much of the activity will be in support of the long-anticipated LNG Canada project in British Columbia, which is nearing its completion date. Industrial Info is tracking about US$4.5 billion worth of natural gas-production projects across Canada that are set to begin in the second quarter, more than 70% of which is attributed to projects in Alberta.
Click on the image at right for a graph detailing natural gas-production projects across Canada that are slated to kick off from April through June, by parent company.
Tourmaline Oil Corporation (Calgary, Alberta) leads all other natural gas producers in the number and total investment value for second-quarter capital-spending kickoffs, all within Alberta and British Columbia's Montney Shale. The two highest-valued projects are found in Alberta's Deep Basin area: a US$440 million development near Edson, which involves drilling 95 new wells to supply multiple gas-processing plants in the area, and a US$220 million development near Grande Cache, which involves drilling at least 45 new wells to supply the nearby Musreau gas-processing plant.
Tourmaline also has recorded significant growth on the British Columbia side, where it plans to supply two gas-processing plants from the US$180 million expansion of its Nig Creek North Gas Field development, and to supply another with the US$140 million expansion of its Conroy Gas Field development. The projects, about 300 miles apart, each involve drilling at least 30 new wells. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the Edson, Grande Cache, Nig Creek and Conroy projects.
"Montney well performance in NEBC [northeastern British Columbia] continues to improve, with 2023 wells outperforming wells from the previous three years," Tourmaline Oil said in a recent quarterly earnings-related press release. "Both natural gas, and particularly liquids production, are exceeding previous year's performance." Still, weak natural gas prices have forced the company to reduce its forecast 2024 capital expenditures from C$2.35 billion (US$1.74 billion) to C$2.13 billion (US$1.58 billion).
Canadian Natural Resources Limited (NYSE:CNQ) (CNRL) (Calgary) trails only Tourmaline in its second-quarter kickoffs, although its total investment value is less than half that of its rival. Three of its projects are located within a 40-mile stretch south of Grand Prairie, Alberta: the US$120 million Wembley Field expansion south of Wembley, which involves drilling at least 20 new wells; the US$80 million South Karr Field upgrade west of Little Smoky, which involves drilling at least 10 new wells; and the US$50 million Gold Creek Field upgrade south of Grovedale, which involves drilling at least 12 new wells.
"We had strong execution [in 2023], including achieving record North American natural gas production, averaging approximately 2.14 billion cubic feet," said Scott Stauth, the chief operating officer of CNRL, in a recent quarterly earnings-related conference call. "And while this is up 3% on an annual basis from 2022, the increase on a Q4-to-Q4 basis is over 100 million cubic feet per day." Subscribers can read detailed reports on the Wembley, South Karr and Gold Creek projects.
CNRL also accounts for the single highest-valued crude oil-production project in Canada set to begin construction through the end of June. For more information on this and other oil projects, many of which are on properties that also feature natural gas production, see April 3, 2024, article - Canada's Oil Producers Gird for Growth in Alberta, Saskatchewan.
Industry titan Shell plc (NYSE:SHEL) (London, England) only accounts for a single gas-production project set to kick off this quarter, but it is among the highest-valued: the US$329 million expansion of its Saturn 1 Natural Gas Production Field southwest of Taylor, British Columbia, which involves drilling 47 new wells and constructing gathering field tie-ins to service its 200 million-standard-cubic-foot-per-day processing plant. Subscribers can learn more from a detailed project report and plant profile.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for natural gas-production projects across Canada that are set to begin in the second quarter.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing natural gas-production projects across Canada that are slated to kick off from April through June, by parent company.Tourmaline Oil Corporation (Calgary, Alberta) leads all other natural gas producers in the number and total investment value for second-quarter capital-spending kickoffs, all within Alberta and British Columbia's Montney Shale. The two highest-valued projects are found in Alberta's Deep Basin area: a US$440 million development near Edson, which involves drilling 95 new wells to supply multiple gas-processing plants in the area, and a US$220 million development near Grande Cache, which involves drilling at least 45 new wells to supply the nearby Musreau gas-processing plant.
Tourmaline also has recorded significant growth on the British Columbia side, where it plans to supply two gas-processing plants from the US$180 million expansion of its Nig Creek North Gas Field development, and to supply another with the US$140 million expansion of its Conroy Gas Field development. The projects, about 300 miles apart, each involve drilling at least 30 new wells. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the Edson, Grande Cache, Nig Creek and Conroy projects.
"Montney well performance in NEBC [northeastern British Columbia] continues to improve, with 2023 wells outperforming wells from the previous three years," Tourmaline Oil said in a recent quarterly earnings-related press release. "Both natural gas, and particularly liquids production, are exceeding previous year's performance." Still, weak natural gas prices have forced the company to reduce its forecast 2024 capital expenditures from C$2.35 billion (US$1.74 billion) to C$2.13 billion (US$1.58 billion).
Canadian Natural Resources Limited (NYSE:CNQ) (CNRL) (Calgary) trails only Tourmaline in its second-quarter kickoffs, although its total investment value is less than half that of its rival. Three of its projects are located within a 40-mile stretch south of Grand Prairie, Alberta: the US$120 million Wembley Field expansion south of Wembley, which involves drilling at least 20 new wells; the US$80 million South Karr Field upgrade west of Little Smoky, which involves drilling at least 10 new wells; and the US$50 million Gold Creek Field upgrade south of Grovedale, which involves drilling at least 12 new wells.
"We had strong execution [in 2023], including achieving record North American natural gas production, averaging approximately 2.14 billion cubic feet," said Scott Stauth, the chief operating officer of CNRL, in a recent quarterly earnings-related conference call. "And while this is up 3% on an annual basis from 2022, the increase on a Q4-to-Q4 basis is over 100 million cubic feet per day." Subscribers can read detailed reports on the Wembley, South Karr and Gold Creek projects.
CNRL also accounts for the single highest-valued crude oil-production project in Canada set to begin construction through the end of June. For more information on this and other oil projects, many of which are on properties that also feature natural gas production, see April 3, 2024, article - Canada's Oil Producers Gird for Growth in Alberta, Saskatchewan.
Industry titan Shell plc (NYSE:SHEL) (London, England) only accounts for a single gas-production project set to kick off this quarter, but it is among the highest-valued: the US$329 million expansion of its Saturn 1 Natural Gas Production Field southwest of Taylor, British Columbia, which involves drilling 47 new wells and constructing gathering field tie-ins to service its 200 million-standard-cubic-foot-per-day processing plant. Subscribers can learn more from a detailed project report and plant profile.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for natural gas-production projects across Canada that are set to begin in the second quarter.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
