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Alberta Tight Gas & Northern Duvernay Growth - Resource and Infrastructure Analysis Study

The study concludes:

1. even in the current low price environment, gas production from the Tight Gas and Duvernay area of Alberta is expected to increase by 50% to 6 Bcf/d by 2020 representing 40% of Western Canada’s production. To support this growth, the report provides two dozen gas plant and pipeline opportunities to coordinate development and utilize the 3.5 Bcf/d of existing surplus gas plant processing capacities
2. the study area is sub-divided into 8 Sub Regions covering the full spectrum from Aggressive Gas Growth to Harvesting the existing reserves with a focus on how the existing sour gas plant processing capacity can be creatively used to reduce capital and operating expenses, accelerate production development cycle times, and increase product recoveries
3. in the Sub Regions with forecast Duvernay and Montney gas and liquids growth, the existing gas gathering and processing infrastructure capacities are over whelmed; the study details opportunities to construct new gas plant processing capacity in conjunction with the existing infrastructure
4. that specific opportunities exist to decrease capital investment of $2,700,000,000 ($2.7 billion) through coordinated industry development
5. that area competitiveness could be improved by reducing gas plant operating expenses and maintenance capital by $170,000,000 ($170 million) per year during the study period
6. as much of the developing gas contains H₂S that must be removed, coordinated industry development for new facility development and integration with the existing infrastructure should reduce approval and construction cycle times resulting in opportunities to accelerate production that represent $2,600,000,000 ($2.6 billion) of additional revenue.

“The developing resource and the capacity within the existing infrastructure present opportunities with significant upside and the potential to increase the area competitiveness in the North American Gas Market” said Mr. Bob Child, P. Eng., study co-author.

Study Background:

1. develops a view of the Alberta Natural Gas Fundamentals to define the economic landscape for Tight Gas and Duvernay Growth
2. forecasts gas, ethane, and NGL production to 2020 for 8 Sub Regions
3. frames and details the gathering, processing, and take-away infrastructure (gas and NGL)
4. details the commercial underpinning for integrated infrastructure development
5. defines an industry blue print for coordinated utilization of the existing area infrastructure along with the development of additional gathering, processing, and transport facilities to meet the forecasted growing supply

“The report is an important analysis that details the resource and infrastructure for the region from an independent and unbiased team perspective; it focuses on optimizing capital, operating expenses, product recoveries, and cycle times as if the team owned all the resources and assets” said Mr. Bill Gwozd, P. Eng., study co-author.

With more than two dozen industry subscribers, the studies (a similar analysis for the Montney British Columbia and Alberta Tight Gas Growth area was issued in January 2012) have great implications due to the significant opportunities presented and should be foundational to Facility Owners and Operators, Producers, Resource Developers, Governments, and Investors that could be impacted.

For more information, please contact:
Bill Gwozd, P.Eng, Vice President, Gas Services
403-234-4299
bill.gwozd@ziffenergy.com

Information Package

This study is a joint venture between Ziff Energy and GPMi.

For more information about GPMi, please visit their website at http://www.gasprocessing.com/.

Ziff Energy and Gas Processing Management Inc., two independent consulting firms who jointly spearheaded the new industry analysis; this study aligns the specialised efforts of two leading Alberta based Consulting Practices to address the challenge of the growing natural gas production in the Tight Gas and Duvernay area to meet the needs of the infrastructure owners and producers in the area. Ziff Energy conducted the Business Analysis and gas/NGL supply forecast and Gas Processing Management the Infrastructure Optimizing and Commercial analysis that assists to understand and address this unique business challenge. The alignment of the two Consulting Practices for these highly specialised series of multi-client studies presents a unique opportunity to combine the ‘best of the two’ companies to frame and analyze the challenge and present collaborative workable solutions.

  Copyright © 2013 Ziff Energy Group

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