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QEC 15.06.2018 kl 12:54 2046


Quebec unveils fracking ban proposal

Shale players hit out at plans by Canadian province to prohibit hydraulic fracturing
Caroline Evans
Houston
14 Jun 2018 22:00 GMT
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Quebec has proposed strict rules on exploration and production, potentially putting the future of some natural gas projects in the Canadian province in jeopardy.

If adopted, the rules would prohibit hydraulic fracturing within the first 1000 metres of the surface and forbid E&P activities within one kilometre of cities. It would also ban fracking in shale.

"The history of the energy transition is being written, and this story combines water protection and economic development," Quebec Energy Minister Pierre Moreau said.

"From now on, in Quebec, the exploration and exploitation of hydrocarbons is forbidden, unless it meets the most rigorous rules in order to protect our environment."

However, Quebec producer Questerre said the rules would undermine the province's environmental goals.

"Local natural gas production will reduce global emissions while providing significant economic benefits including well-paying jobs in Quebec," the company said.

"This is an opportunity for many small towns who want development and to share in the economic benefits."

Questerre chief executive Michael Binnion said the rules would effectively amount to an all-out frack ban, making it nearly impossible to operate in the province.

"It's a big distinction without a big difference," Binnion told Upstream. "Minus a few projects, there is no discovery in Quebec without shale."

Binnion said he was surprised by the proposal, since it had not appeared in previous drafts.

Earlier proposals had allowed fracking while also establishing perimeters around structures to prohibit drilling.

The government is currently taking public comments on the most recent proposal.

Questerre recently settled a legal dispute with Spain's Repsol by buying out its Utica shale position in the St Lawrence Lowlands in Quebec.

Under a letter of intent, the Calgary-based player agreed to buy exploration rights to 753,000 net acres in the Lowlands, along with associated wells, equipment and geological data for C$16.1 million (US$12.4 million).

The Repsol deal boosted Questerre's share price on the Oslo Stock Exchange last week.

The gains were erased after the new proposed regulations were announced, however, causing the stock to slump as much as 50%.

When asked about the future of the deal following the province's announcement, Binnion noted that a final agreement was to be signed once new rules are approved by the Quebec government.

Binnion also accused Quebec Premier Phillippe Couillard's Liberal government of playing politics ahead of a provincial election in October.

"It's one of those absolutely nonsensical decisions made for purely political reasons," he argued.

Should the Liberals hold on to power in October, Binnion said he was "not optimistic" about the future of Questerre's Quebec project.

However, he said he would be "more hopeful" should the centre-right Coalition Avenir Quebec, which led polls last month, win the election.

Not all producers share Binnion's sentiments. Liquefied natural gas player Pieridae Energy, which is developing a few exploration projects in Quebec, said the rules would allow the exploration and exploitation of hydrocarbons in "a large portion" of the province, particularly in the Gaspesie region where its projects are located.

Pieridae said its Bourque project, which was estimated in 2012 to hold more than 1 trillion cubic feet of wet natural gas initially in place at four prospects, could proceed under the proposed rule because it is not a shale project and not located near any restricted areas.

The project targets the Forillon formation, with the current objective to identify the trend's production characteristics and confirm its reserves.

However, the company's Haldimand project, which holds an estimated 87 million barrels of oil equivalent resource in place, could be on the chopping block since it partially lies within an urban perimeter.

"It is clear that the first goal of the corporation is to develop this prospect, but if a change is made that prohibits the development of a validly issued exploration licence, Pieridae will seek to negotiate a fair settlement for the expropriation of the right to develop the resource," Pieridae said.

The company said it also believes the announcement will allow the Quebec government to issue permits to complete a proposed seismic programme at its Gaspesia project this year.
Redigert 20.01.2021 kl 16:32 Du må logge inn for å svare
antevalente
15.06.2018 kl 13:29 1932

Blir en 45 dagers høringsperiode.
Har ikke troen på at dette blir gjennomført.
ealtheseal
15.06.2018 kl 13:54 1849

Spiller "nesten" ingen rolle hva utfallet blir, for hvis det politiske utspillet blir reversert så kommer dette til å ta lang tid fram og tilbake med offentlige diskusjoner.

Nå viser det seg det å være politisk eksponert i Canada er like risky som om Kongsberg gruppen skulle hatt fabrikk på gaza stripen.

Hadde jeg vært Qec så hadde jeg skiftet ledelsen, gjerne en med en trackrecord annet enn emisjoner og røde tall, så benyttet opsjonen for termineringen og heller igangsatt rettslig prosess mot Repsol. Videre hadde jeg heller fokusert på hvor det er allerede produksjon og for å uppe denne. Så trenger jo da selskapet en framtid så de må tydeligvis gjøre noen investeringer (som ikke er Quebeck eller NYC, ref NEC), jeg tenker at jo flere ledd QEC er involvert i fra produksjon til leveranse av gass, jo bedre er det.