PEA buying Shell AB Foothills Production (?)Thats what people here are saying. So PEA must be at least working on it. We know for sure that Shell wants to sell.
So Shell is re-focusing around the world on natural gas and on LNG. And they are marching ahead with an LNG plant in BC. But they dont want their sour gas facilities. Hmmm.
To be fair, as far as I know that gas is either consumed in AB or shipped east. So thats how the infrastructure is laid out, and it would not be cost effective to get the Foothills gas to the LNG plant. But they are focusing on natural gas in general, and dont want their sour gas fields any more.
Shell says the giant Caroline sour gas reservoir is 95% recovered. Presumably PEA does not agree. But a saw off tells us that getting more out of the old sour gas felds is amother plan where PEA is stretching things. Each one of things stretched against the industry grain, looked at in itself, can be pulled off. There is a high probability of pulling off one stretch. But the more of those stretches you need, the odds go down exponentially that the whole thing will fly.
Just saying.
And the sulphur. I seriously doubt Shell would sell the gas fields without the buyer also taking the sulphur production.
Whether Caroline really is 95% recovered, Shell has already converted the plant to process sweet gas brought from a bit further away. It would not be for sweet gas only, but Shell has already moved the midstream infrastructure away from sour gas.