Summary
- Calima Energy (ASX:CE1) reports that the Canadian midstream sector continues to develop projects to keep up with the egress demands of producers despite COVID-19.
- Calima referred to the key projects under development, comprising Tommy Lakes Facilities, LNG Canada, CGL pipeline, NGTL System and the Transmountain pipeline.
- The Company also updated on the recent corporate activities reported by the most active O&G operators in the Montney area.
- Calima believes the continued development of these key infrastructure projects in Canada reflects the resilient nature of the nation’s O&G industry.
The midstream sector in Canada has been able to safely execute and develop construction projects despite COVID-driven repercussions, Calima Energy Limited (ASX:CE1) notified in its latest update.
Perth-headquartered oil and gas (O&G) company recently reported that the Canadian midstream sector continues to develop projects to keep up with the egress demands of producers.
Calima further informed that the Canadian Energy Regulator or CER continued to deal with applications during the COVID-19 pandemic. Besides, the Company updated on the recent corporate activities reported by the most active O&G operators in the Montney area.
To read about Calima’s Developments in September 2020 quarter, Click Here!
Developments in Midstream Sector
Calima referred to the key projects under development in Canada’s midstream sector, which comprise Tommy Lakes Facilities, LNG Canada, Coastal Gas Link (CGL) pipeline, Nova Gas Transmission (NGTL) System and the Transmountain pipeline.
The Company stated that work was finalised throughout the summer at Tommy Lakes Facilities to ensure winterisation of camp facilities and maintenance of infrastructure. To recall, Calima concluded the acquisition of Tommy Lakes Facilities in April 2020, which include compression facilities, linked pipelines and infrastructure in the Tommy Lakes Field.
The Company mentioned that the solar power generation units installed at the facilities utilised very less external fuel to generate electricity over the summer months. These solar power generation units offset the usage of diesel generators that would otherwise exhaust over 50,000 litres of fuel every year. Importantly, these units are needed to sustain cathodic protection on the pipeline and facilities to avoid corrosion by producing an electrical current.
Currently, the Tommy Lakes Facility is maintained in standby mode, awaiting production start-up. the Tommy Lake infrastructure is taken care of by Sproule and Associates with their field operations staff.
Besides Tommy Lakes Facilities, the developments undertaken at other projects are summarised below:
Corporate Activities - Montney Operators
Calima emphasised that Montney continues to remain a hot spot in Canada, with the most active Montney operators being Ovintiv (3 rigs), Seven Gen (5 rigs), and Tourmaline (3 rigs). The Company reported the following activities undertaken by Montney operators in October 2020:
- Canadian Natural Resources Limited or CNRL: The company closed the C$461 million purchase transaction of Montney-focused Painted Pony on 6 October 2020. Painted Pony operated near Calima’s and CNRL’s core Montney shale acreage, delivering synergies associated with current infrastructure and takeaway.
- Keyera Corporation: The company’s Pipestone gas processing and liquids stabilisation plant kickstarted operations in October. This enabled Ovintiv to expand its resource base in the area and maximise its condensate-rich Montney production while optimising midstream fees by directing production to gathering systems with lower line pressures.
- Delphi Energy Corp: The company concluded its restructuring as it raised C$22.9 million in new financing from Kiwetinohk Resources, eliminating C$176 million of debt.
- Advantage Oil & Gas Ltd: Advantage advanced its 4 well Montney pad into December 2020 quarter, raising its expected 2020 capex to a range of C$147-162 million.
Calima shares last traded at $0.006 on 13 November 2020.
