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Montney Formation holds vast gas resources

LNG Industry,

The National Energy Board (NEB), the British Columbia Oil and Gas Commission, the Alberta Energy Regulator, and the British Columbia Ministry of Natural Gas Development, jointly released the first study ever to estimate the marketable unconventional petroleum resources in the Montney Formation.

Recent advances in technology, such as multi-stage hydraulic fracturing, have made it possible to economically develop unconventional gas and oil in the Montney Formation over the past few years, but little had been known about its potential. The report estimates that there is approximately:

  • 12 719 billion m3 (449 trillion ft3) of marketable natural gas.
  • 2308 million m3 (14 521 million barrels) of marketable natural gas liquids (NGLs).
  • 179 million m3 (1125 million barrels) of marketable oil.

Although the findings for marketable NGLs and oil are notable, the estimated quantity of natural gas is extensive. "At current consumption rates the Montney gas resource would meet Canadian needs for 145 years," said Gaétan Caron, the NEB's Chair and CEO. "The report clearly shows that Canadian energy markets will be well supplied with natural gas far into the future."

By combining the Montney's marketable gas estimate with prior assessments, the total potential in Western Canada is 17 898 billion m3 (632 trillion ft3). This estimate is likely to increase as additional unconventional potential from other formations is predicted.

Overall, Canada has a very large remaining natural gas resource base in Western Canada to serve its markets into the future.

The Montney Formation is roughly located in northeast British Columbia, south of Fort Nelson and spread into northwest Alberta past Grande Prairie.

Adapted from press release by Ted Monroe

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