Western Canadian gas prices hit 40-year lows, but major producers signal significant infrastructure investment aheadDespite natural gas prices plummeting to just $0.76/GJ in July—the fourth-lowest monthly average since 1985—Canada’s largest gas producers are announcing aggressive expansion plans that could boost demand for upstream equipment and services.Tourmaline Oil Corp. unveiled a 30% production growth target by 2031, requiring an initial $350 million investment in new gas plants and transportation infrastructure in B.C.’s Montney region. The company plans to increase output to 850,000 boe/d from current levels of 629,265 boe/d.ARC Resources is similarly ramping up capital spending and accelerating its Attachie project development, despite temporarily shutting in 60,000 boe/d of dry gas production due to uneconomical pricing.The investment surge reflects producers’ confidence in medium-term demand fundamentals, particularly:LNG Canada facility startup expected to tighten regional supply-demand balanceTourmaline’s new 8-year German supply contract beginning 2028Anticipated North American gas demand acceleration through 2030sCurrent pricing remains well below extraction and processing costs, according to ARC’s CFO. TC Energy pipeline maintenance has created regional supply bottlenecks, compressing already weak AECO benchmark prices to $0.55/MMBtu.For equipment manufacturers and service providers, the outlook presents a complex picture: immediate drilling activity may remain subdued due to shut-ins, but substantial infrastructure projects are moving forward based on producers’ conviction that better pricing lies ahead. (ICE TORONTO)

Fonte notizia: https://www.cpecn.com/