Repsol YPF SA has agreed to buy all of the gas production from EnCana Corp.’s Deep Panuke field offshore Halifax, NS. The gas will be delivered to markets in Eastern Canada and the northeastern United States, a Repsol spokesman told NGI.

The deal is for the life of the field, estimated to be eight to 18 years. Initial production is expected to be about 200 MMcf/d, which will ramp up to 300 MMcf/d, Repsol’s Kristian Rix said. Production is slated to begin from Deep Panuke late next year (see Daily GPI, May 6, 2008). The gas will be carried by The Maritimes & Northeast Pipeline.

Rix said Repsol views the region to be served with Deep Panuke gas as a 3.5 Bcf/d market, of which the company hopes to capture 20%.

The EnCana board approved the Deep Panuke project in 2007 after federal regulators gave the go-ahead on the company’s development plan (see Daily GPI, Oct. 26, 2007).

Last year Repsol Energy Canada Ltd. was approved for a 25-year license to import liquefied natural gas (LNG) at the Canaport LNG Terminal at Mispec Point near Saint John, NB, and a separate 25-year license to export regasified LNG to the U.S. Northeast by Canada’s National Energy Board (see Daily GPI, Sept. 8, 2008). The Canaport terminal, a project of Repsol and Irving Oil Ltd., is expected to receive its first delivery of LNG from Repsol by May.

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