Natural Gas Supply
Canada is the world’s third largest producer of natural gas. Geological evidence suggests that the natural gas resource in Canada for conventional and unconventional gas is estimated at 424 trillion cubic feet (Tcf), with established reserves at 58.2 Tcf; of the established reserves, approximately 97 per cent is produced from the Western Canadian Sedimentary Basin. Canadian production of these reserves averages at 6 Tcf annually.
Horn River Basin
The Horn River Basin in northeastern British Columbia has been called the “crown jewel” of Canada’s unconventional natural gas industry. With some analysts predicting over 650 Tcf of unconventional gas resource potential in British Columbia, full-scale commercial shale gas production from the Horn River Basin stands to change the face of the North American natural gas industry.
Currently, all of the gas from the Horn River Basin is processed at the Fort Nelson gas plant in northeast British Columbia.
Apache Canada has reserved 130 million cubic feet per day in the EnCana-operated Cabin gas processing facility, a joint venture initiative by all of the major producers in the Horn River Basin. The Cabin facility is targeted for completion in the fourth quarter of 2012.
A joint venture initiative between Apache Canada Ltd. and EnCana Corporation gave the two companies joint control of approximately 430,000 acres. Apache's net estimated resource potential exceeds 10 Tcf. Much of the natural gas to supply Apache’s reserved 51 per cent capacity in Kitimat LNG and Pacific Trail Pipeline will come from its operations in the Horn River Basin and other natural gas plays in Western Canada.
In addition, EOG Resources’ 30-percent capacity in Kitimat LNG will be supplied from its interests in 157,500 net acres in the Horn River Basin. EOG’s net resource potential is estimated to be approximately 9 Tcf.