Integrated Energy: Retail electricity provider Direct Energy buys Canadian natural gas field

As the editor of PennEnergy, a complete energy news, information, jobs and research portal, it's always nice to see a story that spans the petroleum/power industries, and this is a great example of an energy company integrating operations to save on costs.

Earlier this month, retail electricity provider Direct Energy closed a $367.5 million purchase of a producing natural gas field in Canada. Previously owned and operated by Suncor, the Wildcat Hills natural gas field consists of 97 producing wells, as well as 42,000 acres of undeveloped land.

With current production at 80 MMcf/d and reserves estimated at 241 Bcf of gas equivalent, the Wildcat Hills field along with earlier upstream assets will supply 35 percent of Direct Energy's load required by its North American retail natural gas customers.

Rather than pay another company, Direct Energy is going to produce, process and transport its own natural gas to supply to its customers.

Additionally, the company is on the search for more natural gas fields to acquire.

"Direct Energy intends to continue investigating opportunities for upstream investments in natural gas, including shale, and power generation assets in North America," said Badar Kan, president of Direct Energy Upstream & Trading. "In today's low natural gas price environment, well-capitalized companies, like ours, are in a strong position to acquire value-producing assets which is consistent with our strategy for greater integration and growth."

 Direct Energy Upstream & Trading oversees natural gas production, power generation, wind power purchase agreements, midstream gas storage and transportation, commodity procurement and proprietary trading. The company currently owns and operate 4,550 natural gas wells in Alberta and three gas-fired power plants.

A subsidiary of Centrica, Direct Energy (LON:CNA) provides energy to more than 6 million customers.

.................................

Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.


Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs