Ministry

ExxonMobil Corp. has ended its shale natural gas exploration efforts in Poland after two test wells failed to produce “sustained commercial hydrocarbon flow rates,” a spokesman said Monday.

Canada’s Natural Resources ministry last week approved the second liquefied natural gas (LNG) export license from Kitimat, British Columbia (BC), this time to BC LNG Export Co-operative Ltd. The project could begin its “very first” LNG exports to Asian markets by late next year, said Natural Resources Minister Joe Oliver.

Canada’s Natural Resources ministry on Wednesday approved its second liquefied natural gas (LNG) export license from Kitimat, British Columbia (BC), this time to BC LNG Export Co-operative Ltd. The approval gives a green light to the 20-year license granted to the project in February by the National Energy Board (NEB) (see Daily GPI, Feb. 6).

The U.S. State Department signed a memorandum of understanding (MOU) with India’s Ministry of Petroleum and Natural Gas that will allow the two countries to share technical expertise on shale gas resources. Preliminary estimates by India’s Association of Petroleum Geologists indicate that India’s shale gas reserves may be larger than its proven conventional gas deposits. The MOU would help India assess its shale gas resources and help to train Indian personnel. As part of the agreement, the U.S. Geological Survey plans to study India’s shale gas resources. The United States also would help India prepare for its first shale gas auction, which is scheduled to be held by the end of 2011.

British Columbia’s September oil and gas rights sale resulted in more than C$8.7 million in bonus bids, bringing the calendar year to date to C$330.6 million, the Ministry of Energy, Mines and Petroleum Resources said. The sale offered — and sold — 34 parcels covering 15,885 hectares at an average price of C$549/hectare. The top bids included three drilling licenses and two leases in the Graham River area, about 50 kilometers northwest of Hudson’s Hope, that sold for a total of C$4.5 million. Bids ranged from C$1,425 to C$2,168/hectare. Two leases also were sold in the Horn River Basin, about 15 kilometers west of the Cabin Gas Field, for a total of more than C$837,620. Drilling licenses have primary terms of two, three or four years, depending on the location. Leases acquired at the Crown sale have primary terms of five or 10 years, also depending on the location. The next sale, scheduled for Oct. 21, 2009, is expected to offer 62 parcels covering 66,837 hectares. Results from the September sale are available at: www.em.gov.bc.ca/Subwebs/landsale/results/default.htm.

The British Columbia Ministry of Energy and Mines has entered into an agreement with four coal owners in the province that would give them the opportunity to apply to develop petroleum and natural gas rights, including coalbed methane (CBM). The BC and Yukon governments also agreed to work on cooperative plans in the event the Alaska Highway natural gas pipeline is approved.

The British Columbia Ministry of Energy and Mines has entered into an agreement with four coal owners in the province that would give them the opportunity to apply to develop petroleum and natural gas rights, including coalbed methane (CBM). The BC and Yukon governments also agreed to work on cooperative plans in the event the Alaska Highway natural gas pipeline is approved.

Mexico last Monday lifted its 4% tariff on natural gas importedfrom the United States, the Energy Ministry announced. This clearsthe way for expanded gas sales by U.S. companies into thefast-growing markets in northern Mexico.

Unocal Canada Limited received approval from the BritishColumbia Ministry of Energy and Mines to increase the maximumstorage capacity of the Aitken Creek gas storage reservoir. Approval allows Unocal Canada to initially increase working gascapacity at Aitken by 20% to 48 Bcf as early as the second quarter. Ultimately, working gas capacity could increase to 80 Bcf, doublethe current capacity.