20 April 2011 20:16 [Source: ICIS news]
TORONTO (ICIS)--Canadian energy major Encana is shifting the focus of its business to natural gas liquids (NGLs), which yield a “significant premium” over low natural gas prices, its CEO said on Wednesday.
Encana CEO Randy Eresman said his company is redirecting capital investment to NGL development and exploration, and to expanding capacities to extract more liquids from its natural gas streams at several of its gas processing plants.
“We are drilling liquids-prone targets on our existing lands, expanding developments into liquids-rich areas, exploring for oil and acquiring large and significant positions in highly prospective liquids-rich lands,” Eresman told analysts during his company’s first-quarter results conference call.
Encana’s capital investment for these initiatives is expected to come to $1bn (€700m) this year, he added.
Encana’s realised natural gas prices averaged $5.00 per 1,000 cubic feet in the 2011 first quarter, down from $6.14 in the 2010 first quarter.
The company's realised liquids price averaged $80.70/bbl in the first quarter, up from $67.07/bbl in the 2010 first quarter.
Encana also said its planned gas joint venture with PetroChina has not yet been approved by regulators. The companies announced the deal in February.
However, because of tight supplies, the facilities have been running at only about 75% of capacity, according to
($1 = €0.70)
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