Canada briefs

NEB notes shift to tight gas output in Western Canada

Large midsized producers have taken the lead in a decade-long shift toward tight gas production as opposed to production from conventional gas reserves in Western Canada, said the National Energy Board in an Oct. 8 Market Snapshot.

Large midsized producers accounted for 44% of tight gas production in 2014, up from 22% in 2006. Tight gas production from major producers also accounted for 44% in 2014, down from 64% in 2006. The numbers are based on operated-production vs. net production.

Tight gas production's share of Western Canadian gas production increased to 42% in 2014 from 27% in 2006 (OGJ Online, June 10, 2015).

NEB classified major producers as companies producing more than 500 MMcfd of gas and large midsized producers as companies producing at least 100 MMcfd of gas.

Several majors in recent years have focused on projects outside Canada or sold their Canadian gas assets.

NEB said tight gas drilling is very capital intensive, requiring large amounts of land and drilling capacity and that marginal and small producers generally have insufficient drilling prospects to attract the investment capital needed for tight gas operations.

Junior and midsized producers have been able to maintain relatively stable shares of tight gas production at 4% and 7%, respectively, NEB said.

Pension fund partners with Wolf on Canada midstream

Canada's biggest pension fund said it was partnering with Wolf Infrastructure Inc. on midstream infrastructure investments in Canada, announced an initial investment target of more than $1 billion (Can).

The Canada Pension Plan Investment Board (CPPIB) will finance acquisitions and development opportunities after Wolf identifies investment-worthy assets related to natural gas, oil and natural gas liquids. Investments could include processing plants, gathering systems, pipelines, storage, and terminals.

"As a long-term investor, we see midstream as an attractive sector given the significant investment required in Western Canada to support growth in natural gas and natural gas liquids production in new areas," Avik Dey, CPPIB's managing director, head of natural resources, said in a joint statement in late September.

Wolf Infrastructure is a privately owned company in Calgary that is led by the former management team of Mistral Energy Inc., which built the Vantage pipeline system between Alberta and North Dakota. Pembina Pipeline Corp. bought the Vantage system and other Mistral assets for $650 million in 2014.

Joint shale gas study under way in BC

Inpex Corp. announced the start of a joint 1-year geological study for shale gas development in northeastern British Columbia (OGJ Online, Aug. 8, 2012).

Participants include Japan Oil, Gas & Metals National Corp., Inpex Gas British Columbia Ltd., and Nexen Energy ULC. The companies will focus on the Horn River, Liard, and Cordova areas.

In March, the participants agreed to evaluate geological characteristics by analyzing properties of rock samples extracted from shale reservoirs marked for development.

Meritage names VP for Calgary office

Meritage Midstream Services of Denver says its Canadian operations, Meritage Midstream Services III LP, named Michael Hantzsch as senior vice-president. He will work out of Meritage's Calgary office when it opens.

Mostly recently with Pembrina Pipeline Corp., Hantzsch has more than 37 years of experience in the energy industry. He was vice-president of oil sands and heavy oil at Pembrina Pipeline.

Hantzsch started his career with Shell Canada Ltd. and has held senior positions with a number of energy companies including Williams Energy, and Provident Energy.