Unconventional Gas Resource and Infrastructure Template Studies

Gas Processing Management Inc. (GPMi) and Ziff Energy (a division of Solomon Associates) have available four separate Unconventional Gas Geographic Area Resource Development studies that support industry efforts in the major unconventional gas growth areas of the Western Canadian Sedimentary Basin.  Increasing emphasis on the coordinated development of unconventional gas in Alberta and British Columbia is requiring Resource Developers to take a broader view of their opportunities and how it could potentially impact their operations and development resources.  Resource owners are increasingly expected to coordinate their activities to ensure orderly development of the resource from a play or area perspective, including water, surface infrastructure, subsurface, stakeholders, and wellbores.

These studies are now available to help guide your organization with its planning, development, and operational improvement efforts.  Geographically, the four study areas are defined as follows:

  • Montney – north of Fort St. John to the Wapiti River (Montney)
  • Tight Gas and North Duvernay – the Wapiti River to south of the town of Edson (Duvernay, Montney and Cretaceous)
  • Tight Gas and South Duvernay – the town of Edson to south of the City of Calgary (Duvernay and Cretaceous )
  • North Montney and Shale Gas – Grande Prairie to the southern territories (Montney, Liard, Horn River, and Cordova)

The studies delivery an independent analysis of the emerging tight and shale-gas plays over the next decade:

  • A detailed independent assessment of the gas, ethane, and natural gas liquids (NGL) production from the growth resource and existing reserves
  • Supporting geologic models
  • Forecast production for sweet and sour streams, and associated and non-associated gas for existing and developing sources for 10 years
  • Western Canadian natural gas fundamentals defining the economic growth landscape
  • The existing sweet and sour gas gathering and processing infrastructure, and gas and liquids take-away pipeline systems for the areas
  • An integrated industry plan that utilizes the existing infrastructure and modifies it or constructs new facilities as required by the production forecasts; these plans are an independent assessment of the opportunities to optimize:
    • Development cycle time
    • Initial capital investment and ongoing maintenance capital
    • Operating performance (expenses, turnarounds, and facility reliability)
    • Product recoveries
  • Financial benefits for new and repositioned infrastructure; in cases where the existing capacity is forecast not to be required, the study presents options to improve overall performance by shifting gas production and potentially shutting in non-required gas capacity
  • The gathering, processing, and take-away infrastructure [gas, ethane, and NGL (sweet and sour)]; identifying areas of issue on the gas and liquids take-away capacity
  • Practical insight for the commercial basis that is required to implement integrated infrastructure solutions
  • An independent 3rd party prepared Coordinated Industry Area and Play Focused Resource and Development Plan

GPMi and Ziff Energy have conducted these multi-client studies over the last 2 years; the latest study report for the North Montney and Shale Gas will be available in November 2013.  The reports are part of the work processes of many of the developers and infrastructure owners active in these areas; they are presently supported by 24 clients (46 individual subscriptions) covering the full spectrum of the industry (from investor to developer, operator, and interested parties).

GPMi and Ziff Energy are two independent consulting firms who jointly spearheaded these new industry analyses reports. These studies align the specialized efforts of two leading Western Canada-based consulting practices to address the challenge of the growing natural gas production t to meet the needs of the infrastructure owners and producers in the area.  Ziff Energy conducted the business analysis along with the gas/NGL supply forecasts; GPMi completed the infrastructure optimizing and commercial analyses required to understand and address these unique business challenges. The alignment of the two consulting practices for these highly specialized techno-economic series of multi-client reports presents a unique opportunity to frame and analyze the challenges facing the industry.