Strategic Energy Advisory

Northern Duvernay and Tight Gas Growth Resource & Infrastructure Assessment

Developed by Solomon and Gas Processing Management Inc. (GPMi), the 2015 Northern Duvernay and Tight Gas Growth Resource & Infrastructure Assessment (Northern Duvernay & Tight Gas Growth Assessment) provides a detailed overview of gas and natural gas liquid (NGL) production to 2035. It also describes the impact forecasted production will have on area infrastructure.

The growth of Cretaceous, Duvernay, and other tight gas opportunities in the west and north central region of Alberta has changed the dynamics of the infrastructure systems in the area. As a result, a reevaluation of how infrastructure in the area is developed, managed, and operated would be beneficial. Substantial industry effort will need to be expended toward utilizing existing infrastructure for new tight-gas production. Additional processing capacity should be constructed only when needed to supplement existing gathering and processing facilities.

The goal should be for the industry to work cooperatively to develop new, dedicated infrastructure while using the area’s existing infrastructure to benefit both the developing and current resource base. Our assessment quantifies opportunities to decrease capital investment, decrease per-unit operating expenses for both new and existing production, and increase the recovery of existing gas resource and associated liquids.

The Northern Duvernay & Tight Gas Growth Assessment does the following:

  • Develops a view of the fundamentals of Alberta natural gas production that helps define the economic landscape in relation to Northern Duvernay and tight gas growth.
  • Forecasts gas, ethane, and NGL production to 2035 for eight key subregions.
  • Frames and provides detail on the gathering, processing, and takeaway infrastructure for gas and NGL.
  • Describes the commercial underpinnings of integrated infrastructure development.

The assessment provides the industry with a blueprint for the coordinated utilization of the area’s existing infrastructure — and for the development of additional gathering, processing, and transport facilities to meet forecasted growth in supply and production.

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