Canada’s CNRL Targets Gas in 2021
Canadian Natural Resources Limited (CNRL), Canada’s largest gas producer, said December 9 it would increase capital spending on its natural gas assets in 2021 to capture additional value from improving strip pricing.
CNRL’s Q3 gas production this year averaged 1.36bn ft3/day and is expected to increase to 1.6bn ft3/day in Q4 2020 and average 1.48bn ft3/day for the year.
In 2021, gas output is forecast to average between 1.62bn ft3/day and 1.68bn ft3/day, an 11% increase over 2020, as CNRL raises its total capital spending to C$3.2bn (US$2.5bn) from C$2.7bn, the company said in releasing its 2021 budget. Of the total, C$1.35bn is targeted to conventional and unconventional assets – including natural gas – while its long life, low decline assets will see expenditures of about C$1.86bn.
The company also pledged to continue its “leading environmental performance” in 2021. Between 2016 and 2019, it said, it reduced methane emissions by 15%, greenhouse gas (GHG) emissions intensity from its oil sands mining and upgrading and its thermal in situ operations by 36% and its corporate GHG emissions intensity by 16%.
“Our long-life, low decline assets are advantaged as we can leverage technology, innovation and continuous improvement to deliver ever-improving environmental performance,” president Tim McKay said.