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Ziff Energy Announces Western Canada NGL Supply and Infrastructure Growth Study

Impact of LNG Development

Ziff Energy and GPMi analyze NGL production driven by natural gas as feedstock and the impact on NGL transportation and fractionation systems

CALGARY, ALBERTA – April 15, 2014 – Ziff Energy, a division of HSB Solomon Associates LLC (Solomon), and Gas Processing Management Inc. (GPMi) are pleased to announce the launch of their Western Canada Natural Gas Liquids (NGL) Supply and Infrastructure Growth Study – Impact of LNG Development. The study analyzes NGL production driven by natural gas as feedstock to the developing liquefied natural gas (LNG) facilities in British Columbia and Oregon.

The proponents of 16 natural gas liquefaction and export facilities have applied to the Canadian National Energy Board for licenses to export gas volumes or have announced potential projects. More than 30 billion cubic feet per day (Bcf/d) of natural gas feedstock may be required from a basin that currently produces 13 Bcf/d—a sizeable potential production, investment, and activity growth opportunity. These growth NGL volumes from the Cretaceous, Duvernay, and Montney formations, when coupled with the requirement for higher Btu LNG feedstock gas, will drive substantial changes into the Western Canada NGL systems.

“It is no longer the lower price of Canadian gas that will drive activity levels,” said Bill Gwozd, P.Eng., Senior Vice President of Gas Services at Ziff Energy. “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.”

The Western Canada NGL Supply and Infrastructure Growth Study – Impact of LNG Development will:

  • Forecast ethane, propane, butane, and condensate volumes to 2035 based on the developing gas production analyzed in the recently announced Gas West for LNG Growth Study.
  • Assess the impact of growing NGL production on NGL pipeline transportation, straddle plants, fractionation, cavern storage, and other infrastructure.
  • Analyze the NGL required for LNG heat content management of the LNG facilities to achieve the needs of the Asian industrial and utility markets.
  • Complete a supply and demand balance for ethane, propane, butane, and condensate for Western Canada to 2035 as required by the huge growth in NGL production volumes.
  • Identify opportunities for additional NGL markets and required NGL infrastructure as driven by gaps in the supply/demand balance.
  • Scrutinize the development plans for leading NGL infrastructure operators and identify other opportunities that could be considered.

The Western Canada NGL Supply and Infrastructure Growth Study – Impact of LNG Development, an important step toward understanding NGL as a specific product focus, will be released in the fourth quarter of 2014. This study is the sixth in a six-study series, titled Western Canada Gas Supply and Infrastructure Study, which are supported by 55 industry subscriptions and 25 different companies.

The four completed studies in the series are as follows:

  • South Montney Tight Gas Growth, January 2012
  • Tight Gas and North Duvernay Growth, June 2012
  • South Duvernay Growth, February 2013
  • North Montney and Shale Gas Analysis, November 2013

The series’ fifth study, titled Western Canada Gas Supply and Infrastructure Growth Study – Gas West for LNG, will analyze similar issues related to LNG. This study will be available in the summer of 2014.

“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,” said Bob Child, P.Eng., Principal at GPMi and study co-author. “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.”

The Western Canada NGL Supply and Infrastructure Study – Impact of LNG Development is based on publically available data sources. No data is requested from study subscribers. Due to the developing nature of the area infrastructure, Ziff Energy and GPMi may conduct interviews with operators of existing and developing infrastructure to ensure that the study uses the most current data.

Ziff Energy and GPMi will jointly analyze and develop the strategic analysis for the owners and operators of the NGL system, production, and infrastructure, and for investors, governments, and interested parties to consider.

Organizations and industry professionals can contact Bill Gwozd by phone at +1.403.234.4299 or by email at Bill.Gwozd(at)ZiffEnergy(dot)com.

About Ziff Energy
Ziff Energy, a division of HSB Solomon Associates LLC (Solomon), provides upstream performance assessment/improvement and custom consulting to the worldwide energy industry in more than 40 countries, and natural gas consulting services in North America. Solomon is the world’s leading performance improvement company for energy companies seeking to identify and close gaps in operational performance. Combining proven, patented methodologies with objective data analysis, and led by a team of oil and gas consultants steeped in hands-on operational experience, Solomon consistently helps clients with energy-intensive assets achieve greater efficiencies, enhanced reliability, and improved margins. Solomon is part of HSB Group, Inc. Learn more about Ziff Energy at http://www.ZiffEnergy.com. For information about Solomon, visit http://www.SolomonOnline.com.

About Gas Processing Management Inc.
GPMi delivers industry leading solutions in the business of natural gas infrastructure to its clients around the globe. Located in Calgary, Alberta, Canada, the GPMi team has helped clients successfully manage and grow their natural gas properties and infrastructure assets; the highly experienced team provides specialized and industry leading expertise. For further information on GPMi, visit our website at http://www.GasProcessing.com.

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