• EnCana Corporation plans to construct a natural gas processing plant 60 km northeast of Fort Nelson in northeastern British Columbia to help meet expected production growth from the Horn River shale gas play. First phase completion is planned for 2011. A project description has been filed with the British Columbia Environmental Assessment Office. The initial processing capacity is expected to be 400 mmcfpd of gas with final processing capacity expected to be 2.4 bcfpd. There are six phases planned with each one coming on-line as processing demand increases in the Horn River Basin. In the project description EnCana estimates the Horn River shale formation to contain as much as 600 tcf of gas with 10 - 30% of that being recoverable. If suitable formations can be found and fiscal programs can be implemented the project should include carbon capture and sequestration opportunities in the area. Where possible, pipelines will use existing pipeline corridors in order to reduce potential adverse environmental effects.
  • Canada Energy Partners Inc. reports it is beginning to sell gas from eight wells on its Peace River coalbed methane project in British Columbia. Canada Energy owns a 50% working interest in the project. GeoMet Inc., through its subsidiary Hudson's Hope Gas, Ltd., owns the other 50% and is the operator. This is the first commercial coalbed methane project in British Columbia. Canada Energy also holds a 50% interest in the gas treating and compression facilities on the project.