One day - One News

Email This Page

Toyota Tsusho invests $600 million in Encana’s CBM

Tsusho takes 32.5% of Encana’s Coalbed Methane

Toyota Tsusho Corporation (Tsusho) has reached an agreement with Encana Corporation (Encana), Canada‘s largest natural gas producer, to acquire a 32.5% interest in a coalbed methane (CBM) project.

Tsusho will pay C$602 million to acquire the interest and in capital expenditure over the coming seven years.

Tsusho has established a wholly-owned subsidiary, Toyota Tsusho Wheatland Inc., to hold and manage the acquisition. 

This CBM project covers about 480,000 acres in and around Wheatland County in Alberta, Canada and is Canada‘s largest CBM resource play.

Production commenced in 2001 from the Horseshoe Canyon coals with current gas potential of more than about 1 Tcf.

The lands are 100% Encana-owned fee lands and currently produce about:

 – 120,000 million cf/d of gas from about

 – 4,000 existing wells.

Over the seven year development period, about:

 – 1,500 wells are expected to be drilled

 – 1,600 wells should be re-completed in order to increase the production volume.

The peak production volume is expected to be about 140,000 million cf/d.

Toyota Tsusho to play in the North American gas value chain to supply LNG to Japan

Unlike many CBM projects around the world, Horseshoe Canyon coals do not produce water and production can be developed without environmental concerns and costs related to de-watering of the coals prior to production.

Tsusho regards North America a strategic business region for building a Martket Leadership in the natural gas value chain through transactions.

North America is the world’s largest natural gas market with growing supplies from different sources that may serve as a future LNG source for Japan in the near future.

 

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Leave a Reply

Illinois Loans Online should not be obtained by people who do not have the capacity to repay the lenders.