I’ve often said the Horn River Basin is Canada’s best-kept secret.
Investors have focused so much of their attention on U.S. shale gas plays — namely the massive Marcellus and Haynesville formations — that the latest report out of Canada flew right by their radar.

It’s perfectly understandable…

After all, our shale gas production has soared over the last several years. And you can clearly see the EIA’s feelings on the subject:

By 2035, shale gas is projected to make up 45% of our natural gas production.
This won’t be the last time you hear us say this. These shale gas plays will dominate North American gas production.
Now, there’s even more reason to believe as much…

Meet the Horn River Basin

Last month, Canada’s National Energy Board (NEB) released its report on the shale gas potential in the Horn River Basin.

Located in Northeast British Columbia, I distinctly remember being laughed at for even broaching the subject five years ago.

It turns out there are approximately 78 trillion cubic feet of natural gas locked away in the shale — more than double previous estimates. High-case estimates reach nearly 96 Tcf of unconventional gas resources.

Granted, we’ve known for years that this little-talked-about BC gas play held a lot of shale gas. But validation is always welcomed.

Still trying to invest in Canadian energy? Look no further than Kitimat…

The Secret of Kitimat
The Kitimat project is an LNG export facility owned by three of the largest natural gas players in North America: Apache Corp. (NYSE: APA), EOG Resources (NYSE: EOG), and Encana (NYSE: ECA).

Building the Kitimat LNG facility puts them in a perfect position to take advantage of Canada’s best up-coming natural gas plays — like the Horn River Basin.

The initial phase of the project will have a planned capacity of 5 million metric tonnes per year, or roughly 700 million cubic feet per day.

Capacity is expected to double to 10 million metric tons per year from future expansion plans.

Enjoy your weekend,

Keith Kohl
Editor, Energy and Capital

P.S. Below, you’ll find some of this week’s best investment stories from the pages of Energy and Capital and our sister publications.

The Next Stage of the U.S. Shale Boom: Beyond Hydraulic Fracturing
Within the last five years, shale fever has gripped the United States. Meanwhile, hydraulic fracturing has come under fire lately… Now, producers are looking for an easier, more environmentally-friendly alternative to blasting the shale formations with water — and they may have finally found their answer.