Haliguy
Feb 17, 2009, 12:46 PM
EnCana sells Panuke gas
Spanish firm with LNG interests targets U.S. market
By BILL POWER Business Reporter
Tue. Feb 17 - 5:22 AM
One of the biggest natural gas and oil companies in the world will buy all the gas EnCana can produce at its Deep Panuke wells off Nova Scotia.
Repsol YPF is also anxious to deploy an advanced deep-sea exploration system in the region to find gas reserves that might have been overlooked in the past.
An official with Repsol said Monday the Spanish conglomerate will purchase everything EnCana can provide.
"It’s all part of our strategy to increase our presence in that part of the world," spokesman Kristian Rix said of the higher profile that the Spanish oil and gas producer wants to have in Atlantic Canada.
The contract between EnCana and Repsol is good for the life of the Deep Panuke project and involves all gas extracted from the site, which is set to go into production in late 2010.
EnCana spokeswoman Lori MacLean said Repsol will buy about 200 million to 300 million cubic feet of natural gas per day, which is not a huge amount in the context of the international marketplace.
"This is enough gas to heat about 1,500 homes daily," she said.
Terms of the deal were not released.
The Repsol name is well known in New Brunswick, where the Spanish oil and gas giant is a partner with Irving Oil in the Canaport liquefied natural gas project at Saint John.
Repsol Energy Canada Ltd. has a contract with Irving Oil to obtain 100 per cent of the terminal’s capacity.
Repsol operates in about 25 countries and has major reserves mostly in Latin America and northern Africa.
However, despite these big reserves, the potential of operating in Atlantic Canada has huge appeal, said Mr. Rix.
"It is appealing to have stable partners to continue to do business with for many years," he said, a reference to the sometimes uncertain political circumstances in some parts of the world that are rich in gas reserves.
Repsol will use the natural gas from the Deep Panuke site to serve markets in the northeastern United States and it will complement gas provided to Repsol by the Canaport LNG plant, said Mr. Rix.
He said Repsol is anxious to deploy new deep-sea exploration technology in Atlantic Canada.
The technology has helped in the discovery of reserves at exploration sites around the world that were missed because of their depth below the seabed.
Spanish firm with LNG interests targets U.S. market
By BILL POWER Business Reporter
Tue. Feb 17 - 5:22 AM
One of the biggest natural gas and oil companies in the world will buy all the gas EnCana can produce at its Deep Panuke wells off Nova Scotia.
Repsol YPF is also anxious to deploy an advanced deep-sea exploration system in the region to find gas reserves that might have been overlooked in the past.
An official with Repsol said Monday the Spanish conglomerate will purchase everything EnCana can provide.
"It’s all part of our strategy to increase our presence in that part of the world," spokesman Kristian Rix said of the higher profile that the Spanish oil and gas producer wants to have in Atlantic Canada.
The contract between EnCana and Repsol is good for the life of the Deep Panuke project and involves all gas extracted from the site, which is set to go into production in late 2010.
EnCana spokeswoman Lori MacLean said Repsol will buy about 200 million to 300 million cubic feet of natural gas per day, which is not a huge amount in the context of the international marketplace.
"This is enough gas to heat about 1,500 homes daily," she said.
Terms of the deal were not released.
The Repsol name is well known in New Brunswick, where the Spanish oil and gas giant is a partner with Irving Oil in the Canaport liquefied natural gas project at Saint John.
Repsol Energy Canada Ltd. has a contract with Irving Oil to obtain 100 per cent of the terminal’s capacity.
Repsol operates in about 25 countries and has major reserves mostly in Latin America and northern Africa.
However, despite these big reserves, the potential of operating in Atlantic Canada has huge appeal, said Mr. Rix.
"It is appealing to have stable partners to continue to do business with for many years," he said, a reference to the sometimes uncertain political circumstances in some parts of the world that are rich in gas reserves.
Repsol will use the natural gas from the Deep Panuke site to serve markets in the northeastern United States and it will complement gas provided to Repsol by the Canaport LNG plant, said Mr. Rix.
He said Repsol is anxious to deploy new deep-sea exploration technology in Atlantic Canada.
The technology has helped in the discovery of reserves at exploration sites around the world that were missed because of their depth below the seabed.
