Suncor Energy explores for, produces and markets natural gas in western Canada. We also hold assets that could allow us to explore long-term supply opportunities in northern frontier areas, such as the Mackenzie Delta and Corridor in the Northwest Territories, Alaska and Canada’s Arctic Islands.
Suncor's natural gas production is a key advantage, acting as a price hedge against internal consumption at our oil sands and refining operations.
Areas of Operation and Development
Assets for Divestiture
In the autumn of 2009, the Natural Gas business embarked on a new strategy that will see greater emphasis on unconventional gas.
To focus on this goal, the business decided to sell a number of non-core natural gas assets. These assets continue to run safely and reliably, and we believe they will be a good fit for buyers that may have a different strategy than Suncor.
Whenever Suncor agrees to sell a bundle of assets through its divestiture program, the company issues a news release. We also do our best to keep employees and other stakeholders informed about the asset sale process and any effect it may have on them.
Beyond the divestitures, Suncor will likely update its natural gas asset portfolio more often than it has in the past, through acquisitions and divestitures.
Unconventional Gas
In the future, Suncor’s Natural Gas business plans to meet the company’s growing demand for gas through a higher level of participation in the unconventional side of the natural gas industry (e.g., greater involvement in shale gas plays).
Suncor is currently evaluating the best way to proceed with its unconventional holdings, as well as potential opportunities.
Core Properties
For the time being, the assets in Suncor’s Core Properties group are the foundation for our Natural Gas business. Our properties consist of Plains and Foothills assets. The production from these properties will meet the company’s needs while we enhance our presence in unconventional gas.
Examples of our Core Properties assets include:
Central Alberta: Suncor drills for and produces natural gas at properties in central Alberta,
such as:
Ferrier near Rock Mountain House
Hanlan-Robb near Edson
Gilby/Wilson Creek near Rimbley
Panther: With our partner Shell Canada Limited, Suncor continues to drill for natural gas in the Panther River area southwest of Sundre, Alberta, near the border of Banff National Park. Each drilling operation is followed by completion and in-line testing, and then Shell installs the well site facilities. Shell has also constructed additional facilities to ensure production from the wells continues to flow.
Northeast BC: Suncor produces natural gas around the Fort St. John area, working with a number of partners.
Savanna Creek: A natural gas pipeline connects production from an existing compressor station in Suncor’s Savanna Creek field to an existing gas plant in Coleman, Alberta (operated by Devon Canada). Near the Savanna Creek field, Suncor has proposed a project called the Sullivan Creek natural gas field. The Sullivan and Savanna fields are located in the Southern Alberta Foothills.
Read Suncor’s Sullivan Field Notes, a blog about this proposed project.
Areas of Potential Development
We have invested in northern frontier areas, such as the Mackenzie Delta and Corridor in the Northwest Territories, and Alaska, where eventual production is contingent on further exploration and the development of infrastructure.
Suncor also sees the long-term potential for the development of the Arctic Island natural gas resources, which were discovered in the 1970s and 1980s. The two largest assets Suncor holds in the region are the Drake Point and Hecla fields on Melville Island.
In 2008, a small team conducted a feasibility study and identified the timing of regulatory approvals as a significant issue; in the meantime, we have slowed down our Arctic Island efforts.