Two natural gas producers in B.C. now have long-term contracts to supply gas to the U.S. Gulf Coast for LNG exports, which will require increased upstream production.
The Alberta Energy Regulator projected capital spending on oil and gas to increase to C$17 billion this year, which would be a 56% increase over 2021.
“This year’s been a really banner year for gas development,” said Ian Archer, associate director of commodity insights for S&P Global. “We’ve seen very strong growth in Western Canadian production.”
Enbridge Inc. (TSX,NYSE:ENB) recently announced that it plans to invest between C$3.6 billion and C$5.5 billion to expand its natural gas pipelines in B.C. This suggests the Montney formation in northeastern B.C. will continue to be a significant gas-producing region for decades and will continue to draw billions in investment, thanks to new LNG projects expected to come online soon in B.C. and the U.S.
Enbridge…
