RBN’s estimates of natural gas produced by the equity partners in LNG Canada slipped further in June 2023 by 116 MMcf/d, bringing the two-month decline in combined production since the peak in April to 176 MMcf/d. The decline of the past two months may be related to seasonal maintenance and/or disruptions due to wildfires in the area encompassing British Columbia (BC)’s prolific natural gas-bearing Montney formation. As of June, combined partnership production is estimated to be 1,575 MMcf/d, or 1,725 MMcf/d after including non-partner ARC Resources’ 150 MMcf/d contracted gas supply to an unnamed LNG Canada partner (top chart below).
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- Analyst Insight
LNG Canada Partners’ July Gas Production Recovery Led Solely by Petronas
Petronas led a July 2023 recovery in gas production for the LNG Canada partnership, sending output to just short of the record production reached in April 2023. RBN believes that first gas could be flowing to LNG Canada in less than one year.
- Analyst Insight
LNG Canada Partners’ August Gas Production Little Changed Versus July
Combined August 2023 natural gas production for the equity partners in LNG Canada fell slightly versus July. Overall production remains short of of the 2.1 Bcf/d commitment by about 360 MMcf/d, but there remains plenty of time for the partners to further grow production prior to initial start up of test flows of gas to LNG Canada, which we estimate will begin in mid-2024.
- Blog
Reaching Out - The Gathering Pipes That Will Supply the Coastal GasLink Pipeline
It will still be a few years until Canada joins the ranks of nations exporting natural gas in the form of LNG. Until then, a great deal of work has to be completed on both the LNG Canada liquefaction and export facility in Kitimat, BC, and the primary gas pipeline linked to it: the Coastal GasLink. Unlike most LNG export sites in the U.S., which can receive feedgas from multiple production basins via an array of major trunklines, the LNG Canada plant will be relying on gas supplies from primarily one basin: the Montney in Western Canada. And all that feedgas will be transported across British Columbia through one mammoth pipeline. In today’s blog, we take a closer look at the small number of pipelines that will supply gas from the Montney to Coastal GasLink for eventual delivery to LNG Canada.
