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Released May 28, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Canadian oil and gas producer ARC Resources Limited (Calgary, Alberta) is preparing for a boom in Canada's market for liquefied natural gas (LNG) exports. The company bolstered its position in the Canadian energy markets in first-quarter 2025 through major agreements with ExxonMobil Corporation (Spring, Texas) and Strathcona Resources Limited (Calgary, Alberta). Industrial Info is tracking more than US$6.5 billion worth of active and proposed projects from ARC, more than US$4 billion of which is attributed to drilling programs.
Click on the image at right for a graph detailing ARC's active and proposed projects, by type.
Earlier this month, ARC announced it had signed a definitive agreement to acquire condensate-rich Montney assets in Alberta's Kakwa region from Strathcona Resources for about US$1.6 billion. The deal, which is expected to close in early July 2025, is expected to add roughly 40,000 barrels of oil equivalent per day (BOE/d) of production, about 50% crude oil and liquids, and 50% natural gas. It also will include about 11,000 barrels per day (BBL/d) of condensate.
The acquisition will join ARC's active developments in the Montney Shale, which include its proposed Septimus Natural Gas Processing Plant in the Northeastern British Columbia (NEBC) region. ARC continues to seek permits for the complex, the first phase of which would have an inlet capacity of 90 million standard cubic feet per day of natural gas and a natural gas liquids (NGL) production capacity of 15,000 BBL/d. It will supply Shell plc's (London, England) LNG Canada Liquefaction and Export Terminal in Kitimat, British Columbia, which is nearing full-scale operations.
The LNG Canada project will receive gas from the Septimus and other projects in the NEBC region via the Coastal GasLink Pipeline, for export to Asian markets. Following completion of the first phase of Septimus, ARC hopes to develop second and third phases in the coming years, which would add identical inlet capacities for a total 270 million standard cubic feet per day. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the Septimus Phase I, Phase II and Phase III projects, and the LNG Canada project.
Late in the first quarter, ARC entered into a long-term sale and purchase agreement with ExxonMobil LNG Asia Pacific (EMLAP), a subsidiary of ExxonMobil, in which EMLAP will purchase all of ARC's LNG offtake from the Cedar LNG Export Terminal in Kitimat, which is expected to total about 1.5 million tons per year. The Cedar LNG project presently is expected to be completed in late 2028. Subscribers can learn more about Cedar LNG in a detailed project report and plant profile, and can find more details about the project and Canada's booming LNG market in Industrial Info's April 9, 2025, article - Cedar LNG Finds Midstream Partner, and May 13, 2025, article - Momentum Increases for North American LNG.
ARC also continued its start-up of the US$360 million first phase of its natural gas and NGL drilling program in the Attachie West Field, near Fort Saint John, British Columbia, during the first quarter, with "production and cash flow in line with expectations," according to a quarterly earnings-related press release. The ramp-up to capacity was delayed earlier in the current quarter, to address "early-time production emulsion at the plant." Production from the current quarter is expected to average between 30,000 and 35,000 BOE/d, and it is on-track to average between 35,000 and 40,000 BOE/d in the second half of the year. Subscribers can learn more from a detailed project report and plant profile.
Sunrise Project Faces Pricing Challenges
ARC expects natural gas prices to rise in the coming months, as demand continues to grow for LNG exports and the electric power sector faces seasonal demand increases. However, ARC and other companies have faced weak Western Canadian natural gas prices at Station 2 near Chetwynd, British Columbia, which is a key natural gas hub for Western Canada. Strong natural gas supply, high storage levels and a series of pipeline maintenance programs have combined to drive prices at the hub down, which is affecting activity at ARC's Sunrise Natural Gas Processing Complex in Farmington, British Columbia.
In response to the situation at Station 2, "ARC elected to curtail approximately 75 million cubic feet per day of natural gas production at Sunrise late in the first quarter," the company said in a press release. "This effectively eliminated ARC's exposure to Station 2, where natural gas prices were especially weak, thereby preserving resource for periods when prices are higher. ARC will continue to adjust production levels at Sunrise if natural gas prices do not support ARC's return requirements."
ARC already had curtailed production at Sunrise during the third and fourth quarters of 2024, dropping its full-year average output by roughly 10,500 BOE/d, although some production was restored in the fourth quarter after natural gas prices recovered. Nonetheless, ARC proceeded as planned with its 2025 field expansion and drilling program at Sunrise, which will involve adding eight new wells. Subscribers can learn more from a detailed project report.
Subscribers to Industrial Info's GMI Project and Plant databases 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 detailed project reports for active and proposed projects from ARC.
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 ARC's active and proposed projects, by type.Earlier this month, ARC announced it had signed a definitive agreement to acquire condensate-rich Montney assets in Alberta's Kakwa region from Strathcona Resources for about US$1.6 billion. The deal, which is expected to close in early July 2025, is expected to add roughly 40,000 barrels of oil equivalent per day (BOE/d) of production, about 50% crude oil and liquids, and 50% natural gas. It also will include about 11,000 barrels per day (BBL/d) of condensate.
The acquisition will join ARC's active developments in the Montney Shale, which include its proposed Septimus Natural Gas Processing Plant in the Northeastern British Columbia (NEBC) region. ARC continues to seek permits for the complex, the first phase of which would have an inlet capacity of 90 million standard cubic feet per day of natural gas and a natural gas liquids (NGL) production capacity of 15,000 BBL/d. It will supply Shell plc's (London, England) LNG Canada Liquefaction and Export Terminal in Kitimat, British Columbia, which is nearing full-scale operations.
The LNG Canada project will receive gas from the Septimus and other projects in the NEBC region via the Coastal GasLink Pipeline, for export to Asian markets. Following completion of the first phase of Septimus, ARC hopes to develop second and third phases in the coming years, which would add identical inlet capacities for a total 270 million standard cubic feet per day. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the Septimus Phase I, Phase II and Phase III projects, and the LNG Canada project.
Late in the first quarter, ARC entered into a long-term sale and purchase agreement with ExxonMobil LNG Asia Pacific (EMLAP), a subsidiary of ExxonMobil, in which EMLAP will purchase all of ARC's LNG offtake from the Cedar LNG Export Terminal in Kitimat, which is expected to total about 1.5 million tons per year. The Cedar LNG project presently is expected to be completed in late 2028. Subscribers can learn more about Cedar LNG in a detailed project report and plant profile, and can find more details about the project and Canada's booming LNG market in Industrial Info's April 9, 2025, article - Cedar LNG Finds Midstream Partner, and May 13, 2025, article - Momentum Increases for North American LNG.
ARC also continued its start-up of the US$360 million first phase of its natural gas and NGL drilling program in the Attachie West Field, near Fort Saint John, British Columbia, during the first quarter, with "production and cash flow in line with expectations," according to a quarterly earnings-related press release. The ramp-up to capacity was delayed earlier in the current quarter, to address "early-time production emulsion at the plant." Production from the current quarter is expected to average between 30,000 and 35,000 BOE/d, and it is on-track to average between 35,000 and 40,000 BOE/d in the second half of the year. Subscribers can learn more from a detailed project report and plant profile.
Sunrise Project Faces Pricing Challenges
ARC expects natural gas prices to rise in the coming months, as demand continues to grow for LNG exports and the electric power sector faces seasonal demand increases. However, ARC and other companies have faced weak Western Canadian natural gas prices at Station 2 near Chetwynd, British Columbia, which is a key natural gas hub for Western Canada. Strong natural gas supply, high storage levels and a series of pipeline maintenance programs have combined to drive prices at the hub down, which is affecting activity at ARC's Sunrise Natural Gas Processing Complex in Farmington, British Columbia.
In response to the situation at Station 2, "ARC elected to curtail approximately 75 million cubic feet per day of natural gas production at Sunrise late in the first quarter," the company said in a press release. "This effectively eliminated ARC's exposure to Station 2, where natural gas prices were especially weak, thereby preserving resource for periods when prices are higher. ARC will continue to adjust production levels at Sunrise if natural gas prices do not support ARC's return requirements."
ARC already had curtailed production at Sunrise during the third and fourth quarters of 2024, dropping its full-year average output by roughly 10,500 BOE/d, although some production was restored in the fourth quarter after natural gas prices recovered. Nonetheless, ARC proceeded as planned with its 2025 field expansion and drilling program at Sunrise, which will involve adding eight new wells. Subscribers can learn more from a detailed project report.
Subscribers to Industrial Info's GMI Project and Plant databases 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 detailed project reports for active and proposed projects from ARC.
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).
