Chevron Canada to pursue its first ever shale development
Calgary’s Chevron Canada has announced that it has given the green light on its first ever shale development, with 55,000 acres in Central Alberta’s Duvernay formation being the planned region for the project.
Having first acquired the regional leases around eight years ago, Chevron now holds a 70% interest in the 330,000 acres in the Duvernay formation, enabling it to undertake the shale project.
“The Duvernay formation is one of the most prospective liquids-rich shale plays in North America,” said Jeff Gustavson, President of Chevron Canada. “Chevron Canada looks forward to realizing the value of this resource from our industry-leading position while delivering economic benefits to local communities, Alberta and Canada.”
The company will also employ a level of social responsibility, with the region being home to a number of local peoples.
“Chevron is committed to collaborating with aboriginal peoples and local communities to build long-term, trusting and mutually beneficial relationships related to the Kaybob Duvernay development,” added Gustavson.
The energy firm will call upon its regulator infrastructure and service partners of Pembina Pipeline Corporation and Keyera Corporation throughout the development.
Although Chevron did not go into the details of this, Pembina revealed that its own role will entail the building of infrastructure to transport the natural gas and condensate, an ordeal that will cost Chevron $290mn.
“Pembina will leverage its template designs in order to safely and cost-effectively construct the facilities for our partner,” said Jaret Sprott, Pembina’s Vice President of Gas Services. “We look forward to continuing to develop future Duvernay infrastructure needs over the long-term.”
Chevron hopes to have the project up and running in the second half of 2019.