CORRECTED-Spectra may expand Canadian pipeline for shale gas
June 2nd, 2008 | by admin |(Corrects May 30 story to show in paragraph 4 that the openseason ends, not starts, on June 13)
CALGARY, Alberta, May 30 (Reuters) - Spectra Energy Corp(SE.N: Quote, Profile, Research) will gauge support among natural gas producers to expandpipeline capacity in an area of Western Canada where companieshave mounted an exploration rush for unconventional reserves,it said on Friday.
Spectra, which runs British Columbia’s main gas pipelinenetwork, said it aims to expand its system near the Horn RiverBasin shale gas play in the province’s northeast, wherecompanies such as EOG Resources (EOG.N: Quote, Profile, Research), EnCana Corp (ECA.TO: Quote, Profile, Research)and Nexen Inc (NXY.TO: Quote, Profile, Research) have estimated huge reserves.
A large increase in Horn River gas supplies would requireexpansion of capacity in Spectra’s Fort Nelson operations.
The company will hold an open season for potential shippingcommitments ending on June 13, it said.
“Given producer expectations for Horn River Basin shale gasdevelopment and production, we are holding this open season toevaluate the need for additional raw gas transmission servicesconnected with our existing Fort Nelson processing plant,”Duane Rae, vice-president of Spectra Energy Transmission Westsaid in a statement.
Horn River shale reserves have been pegged in the trillionsof cubic feet, but unlike conventional gas, output will risegradually and require busy drilling and high-tech rockfracturing methods.
The play has gained industry attention at the same time asother unconventional gas prospects being explored in Texas’sBarnett shale and northern British Columbia’s Montney. (Reporting by Jeffrey Jones; editing by Rob Wilson)
