Canadian Spirit Resources Inc. (CSRI), which recently reactivated natural gas production at Farrell Creek in Northeast British Columbia, is aiming for a share in supplying feed gas to regional LNG export projects – notably from the Montney Shale basin.
The company’s Montney natural gas resources are focused in one core area at Farrell Creek where there are 17.0 trillion cubic feet (gross) of resources and 9.0 Tcf net. Gas produced there is meant to be supplied to approved LNG projects on the Pacific West Coast. CSRI outlined “we have direct access to the Enbridge Westcoast Energy T-South mainline, then there is the TCPL North Montney Mainline (currently under construction) and the Coastal GasLink pipeline that will deliver natural gas to the Kitimat LNG facilities.”
Though CSRI and its venture partner, Canbriam Energy opted to shut-in its Farrell Creek gas processing facility and associated Montney wells in June when low prices resulted in a negative netback, production resumed on November 17. Based on the company’s net average production over 60 days prior to the suspension of its joint venture operations, a production rate of approximately 2.5 million cubic feet per day is anticipated, with CSRI’s 35 percent share being approximately 0.87 MMcf per day.
TC produces more feedgas
TC Energy Corp, developer of the Coastal GasLink in British Columbia, also forecasts of a surge in feed gas for US Gulf Coast LNG. The Calgary-based company provided 30 percent of US LNG feed gas which is set to surge to 40 billion cubic feet per day of supply for liquefaction in the years ahead.
“We are well positioned to capture the next wave of LNG exports,” said CEO François Poirier.
