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The report examines the effects on AECO hub gas pricing, the Canadian benchmark price for naturalgas, from what is expected to be exceptional levels of condensate-directed Montney drilling in the coming years. Due to insufficient growth within the highest-yielding condensate regions of the Montney gas play in B.C.
Dane Gregoris, Managing Director, EIR Impact of Increased Oil Sands Production on Condensate Demand and AECO Hub Gas Pricing The increase in oil sands production is set to drive substantial demand for in-basin condensate volumes, which are essential for diluting bitumen for pipeline transportation.
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