Shutting

Prospects of prolonged natural gas gluts have prompted a recommendation for Canada’s National Energy Board (NEB) to start preparing for hearings on costs of shutting down an industry cornerstone: TransCanada Corp.’s Mainline from Alberta to Ontario, Quebec and border crossings into the U.S. Midwest and Northeast.

Prospects of prolonged natural gas gluts have prompted a recommendation for Canada’s National Energy Board (NEB) to start preparing for hearings on costs of shutting down an industry cornerstone: TransCanada Corp.’s Mainline from Alberta to Ontario, Quebec and border crossings into the U.S. Midwest and Northeast.

Encana Corp. is curtailing North American natural gas supply by up to 600 MMcf/d this year through cuts to capital investments and by shutting in production, the Calgary-based producer said Friday. The company already has taken action to “slow down or curtail” output from existing wells equal to 250 MMcf/d, said CEO Randy Eresman.

Encana Corp. is curtailing North American natural gas supply by up to 600 MMcf/d this year through cuts to capital investments and by shutting in production, the Calgary producer said Friday. Actions were under way to “slow down or curtail” output from existing wells equal to 250 MMcf/d, said CEO Randy Eresman.

Calgary-based Progress Energy Resources Corp. is shutting in 10% of its natural gas production, which is all in Canada, until prices cooperate. The company produced an estimated 224.6 MMcf/d in 3Q2011. “We believe the current low natural gas price is unsustainable,” said CEO Michael Culbert. “Shifting capital to preserve asset value and maintain our balance sheet strength is prudent in this environment.” The Montney Shale-focused producer also is reducing its gas development spending to C$365 million this year, a reduction of C$100 million from the original 2012 capital budget. Progress Energy is jointly developing around 900,000 net acres in the Montney Shale with Malaysia’s Petronas (Petroliam Nasional Berhad). An associated liquefied natural gas export plan also is being studied (see related story).

Calgary-based Progress Energy Resources Corp. said late Tuesday it is shutting in 10% of its natural gas production, which is all in Canada, until prices cooperate. The company produced an estimated 224.6 MMcf/d in 3Q2011.

Repairs are under way and expected to be completed by mid-week on Bison Pipeline, a section of which experienced a rupture last week in Wyoming (see Daily GPI, July 25), shutting in the pipeline. A spokesman for TransCanada Corp., owner of Bison, told NGI the preliminary investigation into the cause of the rupture has determined that it was the result of mechanical damage. “Something struck the pipe,” said spokesman James Millar. However, he could not say whether there was excavation taking place in the area of the rupture in Campbell County, WY. TransCanada is working with the Pipeline and Hazardous Materials Safety Administration on its restart plan for the pipeline, Millar said. “When they approve that restart plan…then we can begin flowing gas on Bison.”

ANR reported shutting in the Eugene Island 188/189 meter offshore Louisiana until Sept. 15 to perform unplanned pipe maintenance “due to a possible leak.”

Chesapeake Energy Corp. is shutting in more natural gas production because of continued low wellhead prices, the producer said Thursday. Plans are to curtail 400 MMcf/d (gross), which is twice as much as Chesapeake began to defer in early March (see NGI, March 9).