Sable

Aging natural gas wells that began producing in 1999 offshore Nova Scotia, part of the once heralded Sable Offshore Energy Project, may be plugged starting as soon as 2017, an ExxonMobil Canada Ltd. official said.

Aging natural gas wells that began producing in 1999 offshore Nova Scotia, part of the once heralded Sable Offshore Energy Project, may be plugged starting as soon as 2017, an ExxonMobil Canada Ltd. official said.

Calgary-based Aux Sable Liquid Products LP plans to spend $130 million to increase processing capabilities at its facilities in Channahon, IL.

Maritimes & Northeast U.S. (M&N) said it learned that the Sable Offshore Energy Inc. (SOEI) production facility had encountered a decrease in output volume Friday. “Due to this decrease in supply, shippers sourcing their supply from SOEI should contact their supplier to get any information that may be desired concerning the cause, extent and duration of the event, as well as the potential of this event causing supply restrictions for current and/or future gas days,” M&N said. It added that all shippers must act to avoid the creation of due-pipe imbalances and not take due-shipper imbalance paybacks.

Maritimes & Northeast Pipeline in the United States (Maritimes US) reported being informed by the operator of the Sable Offshore Energy Project (SOEP) that a shutdown of SOEP processing facilities is now scheduled to begin at 10 p.m. CDT Friday and continue through June 7. The outage previously had been planned for May 26-31 (see Daily GPI, May 11). Maritimes US said it understands that no supply will be available from SOEP during this period, so due to limited operational flexibility it will not be allowing any due-shipper imbalance resolution or creation of due-pipe imbalances.

Shell Canada Ltd. has revised its estimate of original sales gas reserves for the Sable Offshore Energy Project (SOEP) fields downward by approximately 90 Bcf, to 700 Bcf, and has reclassified approximately 200 Bcf of sales gas reserves from the proven developed category to proven undeveloped.

Producers and consumers alike stand to gain if Quebec and Ontario secure access to natural gas from the new production fields offshore of Nova Scotia that have to date been tapped almost entirely for exports to the northeastern United States, according to Gaz Metropolitain of Montreal and Enbridge Inc., owner of Toronto distributor Enbridge Consumers’ Gas. The two companies are proposing to build a new pipeline, the Cartier project, that would connect markets in Quebec City with a new lateral off of the Maritimes & Northeast Pipeline in New Brunswick.

Maintenance at the Sable Offshore Energy Processing Plant that had been scheduled for April 16-19 (see Daily GPI, April 2) was postponed. The tentative work period now is from midnight April 18 to midnight April 20. Maritimes & Northeast Pipeline expects only about 35% of capacity to be available for deliveries during that time. Full system capabilities are anticipated for April 21.

Unplanned maintenance at the SOE (Sable Offshore Energy) GasPlant has caused physical supply into Maritimes & Northeast todecrease temporarily, the pipeline said. Due to this, shippers areexpected to match physical volumes to nominated receipts, it added.However, the reduced throughputs have allowed M&N to lift ITrestrictions at the Baileyville (ME) Compressor Station.