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The report examines the effects on AECO hub gas pricing, the Canadian benchmark price for natural gas, from what is expected to be exceptional levels of condensate-directed Montney drilling in the coming years. The good news is that prices for condensate produced by many operators alongside natural gas volumes will likely be quite robust.
Explore the impact of increased oil sands production on the Canadian condensate and AECO gas markets. Non-upgraded Canadian oil sands production is expected to rise by around 100 Mbbl/d annually until 2028. This surge will create a significant need for condensate, particularly from the Montney play in Alberta and B.C.
This phase involves the use of a floating processing unit in the offshore well area, located 220 km from the shore, to separate natural gas and condensates. Integrating it into the production map is expected to take effect by 2028.
North Americas LNG export capacity is set to triple by 2028, reaching nearly 25 bcf/d, with major projects like Golden Pass and Plaquemines leading the way. Should you be blessed with valuable condensate along with your water in these lines, we can help you economically separate those in our 3-phase collection reservoir.
In its release, BP said Shah Deniz Compression is one of the 8-10 major projects expected to start up between 2028 and 2030, “as disclosed at BP’s 2025 capital markets update” The company added that the project is expected to contribute to growing BP’s global upstream production to 2.3
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