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Ziff Energy launches Canadian LNG growth study

LNG Industry,

Ziff Energy, a division of HSB Solomon Associates, together with Gas Processing Management Inc (GPMi), has announced the launch of the Gas West for LNG Growth Study.

The study analyses the gas growth areas of the Western Canadian Sedimentary Basin in Alberta and British Columbia as key suppliers of natural gas to LNG facilities on the west coast of BC, Canada and Oregon, US.

Natural gas feedstock

The proponents of 16 natural gas liquefaction (NGL) and export facilities have either applied to the Canadian National Energy Board (NEB) for licenses to export gas volumes or have announced potential projects. Over 30 billion ft3/d of natural gas feedstock may be required from a basin that currently produces 13 billion ft3/d. This represents a sizeable potential production, investment, and activity growth opportunity.

VP Gas Services at Ziff Energy, Bill Gwozd, commented: “It is no longer the lower price of Canadian gas that will drive activity levels. Instead, it is the full-cycle cost of drilling and field exploitation, gas gathering and processing, gas transport to the West Coast, gas liquefaction, LNG tankers to Asia, and regasification for Asian gas utilities and industrials that will determine the ultimate volume of LNG that will be harvested from Canada”.

“If the Canadian industry can manage the full-cycle costs of the LNG chain and compete on a worldwide scale, then Asia will consume as much LNG as we can reasonably deliver,” Gwozd added.

The Gas West for LNG Growth Study will:

  • Assess the risk associated with the proposed LNG facilities and construct an independent assessment of how activity in the basin will unfold.
  • Forecast gas production to 2035 from the growth areas with a focus on tight gas in the Cretaceous and Montney formations, and shale gas in the Duvernay, Horn River, Liard, and Cordova Basins.
  • Sequence basin development based on resource ownership, gas characteristics, hydrocarbon liquids content, development costs and economics, and LNG facility access.
  • Assess the required long-haul gas feedstock pipelines to the LNG facilities to build a logical case for integrated development.
  • Analyse the existing sales gas systems to the producing area’s gas processing facilities and define opportunities to modify, expand, and construct new pipes.

The Gas West for LNG Growth Study will be released in Q2 2014. The study is the fifth in a six-study series titled, Western Canada Gas Supply and Infrastructure Study, which are supported by 50 industry subscriptions and 25 different companies.

Gas study series

“The completed studies provide important and timely analyses that detail the resource and optimize the development of the infrastructure for the gas growth regions in Western Canada from an independent and unbiased perspective. They focus on optimizing capital, reducing operating expenses, enhancing product recoveries, and shortening cycle times as if an industry team owned all the resources and assets,” commented Bob Child, Principal at GPMi and a study co-author.

Ziff Energy and GPMi will together analyse and develop the strategic analysis for the owners and operators of the LNG plants, production, and infrastructure, and for investors, governments, and interested parties to consider.


“We believe that the Gas West for LNG Growth Study has the potential to support the industry in its efforts to effectively and efficiently develop an Asian-focused LNG supply. An integrated approach has the potential to decrease capacity overbuild and improve utilizations, increase the efficient use and overall effectiveness of the infrastructure, increase recoveries of the associated resources, and ultimately result in increased competitiveness of the Western Canadian basin on the North American and international markets. LNG purchasers consider several factors including the growth of LNG markets, the decline of existing LNG supply sources, diversification and reliability of LNG supply locations, and the delivered price,” concluded Bill Armstrong, Principal at GPMi.

Adapted from press release by Katie Woodward

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