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Released November 12, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Montney-shale focused NuVista Energy Limited (Calgary, Alberta) said a natural gas supply agreement with commodity trader Trafigura gives it its first exposure to the international market for liquefied natural gas (LNG).
Trafigura signed a 13-year agreement with NuVista to secure the supply equivalent of 21 billion British thermal units per day taken largely from the Montney shale formation in Alberta, one of the more prolific basins in North America.
Priced to the Japan Korea Marker (JKM), a benchmark for the spot price for LNG in the Asian market, the deal gives NuVista tacit exposure to foreign markets.
"We are extremely pleased to now make our first entry to the world LNG markets with this long-term agreement with Trafigura, one of the world's leading LNG, energy and commodities groups," Jonathan Wright, the chief executive officer for NuVista, said Friday.
Trafigura in April secured a half-million-dollar loan from two Japanese banks to help supply LNG to a utility company in the country. Japan has few resources of its own and is therefore heavily dependent on imports to meet its energy demands.
Legacy producers such as Australia, Qatar and the United States had worked to meet Asian demand for gas, though Canada is emerging as an LNG exporter. The export capacity for LNG from North American operators is expected to double between now and 2028, according to the U.S. Energy Information Administration.
About 20% of that, some 2.5 billion cubic feet per day (Bcf/d), is expected to come from Canada, which is breaking North American landlock with its new export capacity.
Among the more promising projects is the Woodfibre LNG facility in British Columbia, which is slated for exports by 2027. Work began in 2014 on a complex designed to process 220 million standard cubic feet per day of natural gas into LNG via two production trains. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
In September, meanwhile, natural gas was introduced to the Canada LNG facility in British Columbia for the first time. The facility has a design capacity of 14 million metric tons per year in LNG exports. Subscribers can learn more by viewing the project report. Among the largest energy investments in Canadian history, first exports could come by the middle of next year.
NuVista's deal with Trafigura, meanwhile, kicks in on January 1, 2027. The Canadian energy company during the third quarter invested heavily in the Montney shale, completing 12 wells in the process.
The company produced around 83,000 barrels of oil equivalent per day during the third quarter, with 60% of that as natural gas.
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
Trafigura signed a 13-year agreement with NuVista to secure the supply equivalent of 21 billion British thermal units per day taken largely from the Montney shale formation in Alberta, one of the more prolific basins in North America.
Priced to the Japan Korea Marker (JKM), a benchmark for the spot price for LNG in the Asian market, the deal gives NuVista tacit exposure to foreign markets.
"We are extremely pleased to now make our first entry to the world LNG markets with this long-term agreement with Trafigura, one of the world's leading LNG, energy and commodities groups," Jonathan Wright, the chief executive officer for NuVista, said Friday.
Trafigura in April secured a half-million-dollar loan from two Japanese banks to help supply LNG to a utility company in the country. Japan has few resources of its own and is therefore heavily dependent on imports to meet its energy demands.
Legacy producers such as Australia, Qatar and the United States had worked to meet Asian demand for gas, though Canada is emerging as an LNG exporter. The export capacity for LNG from North American operators is expected to double between now and 2028, according to the U.S. Energy Information Administration.
About 20% of that, some 2.5 billion cubic feet per day (Bcf/d), is expected to come from Canada, which is breaking North American landlock with its new export capacity.
Among the more promising projects is the Woodfibre LNG facility in British Columbia, which is slated for exports by 2027. Work began in 2014 on a complex designed to process 220 million standard cubic feet per day of natural gas into LNG via two production trains. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
In September, meanwhile, natural gas was introduced to the Canada LNG facility in British Columbia for the first time. The facility has a design capacity of 14 million metric tons per year in LNG exports. Subscribers can learn more by viewing the project report. Among the largest energy investments in Canadian history, first exports could come by the middle of next year.
NuVista's deal with Trafigura, meanwhile, kicks in on January 1, 2027. The Canadian energy company during the third quarter invested heavily in the Montney shale, completing 12 wells in the process.
The company produced around 83,000 barrels of oil equivalent per day during the third quarter, with 60% of that as natural gas.
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
