GLNG: ARC strikes deal to supply gas to LNG Canada

ARC Resources said last week that it had struck a deal to supply natural gas to a member of the LNG Canada consortium, which is building an LNG export terminal on the British Columbia coast.
The agreement is set to take effect when LNG Canada enters service – expected in 2025 – and will see ARC supply 150mn cubic feet (4.2mn cubic metres) per day of gas over the long term to be used as feedstock for the terminal. The gas will come from ARC’s Sunrise facility, the company said. It did not specify which consortium member the agreement was with.
Development of LNG Canada is being led by Royal Dutch Shell, which operates the project with a 40% interest. The other participants in the consortium are Malaysia’s Petronas, with a 25% stake, PetroChina and Japan’s Mitsubishi with 15% each and Korea Gas (KOGAS) with 5%.
ARC is the largest producer in the Montney shale gas play, which spans Alberta and BC. The company’s total production reached 353,657 barrels of oil equivalent per day (boepd) on average during the third quarter of 2021, with natural gas accounting for 61% of this. Sunrise produced an estimated 286 mmcf (8.1 mcm) per day in the third quarter, but ARC noted that it was planning to invest CAD115mn ($92.5mn) into an expansion of the facility in 2022. This is anticipated to add 80 mmcf (2.3 mcm) per day of gas production and processing capacity.