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    Canada’s Tenaz Energy acquires Dutch gas assets

Summary

Acquisitions include North Sea licences and a position in a potential CCS project.

by: Dale Lunan

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Energy Transition, Hydrogen, Corporate, Investments

Canada’s Tenaz Energy acquires Dutch gas assets

Calgary-based Tenaz Energy said December 20 it had acquired a private company with upstream and midstream assets in the Netherlands, including producing and non-producing licences in the Dutch sector of the North Sea.

Nine offshore licences will provide Tenaz with 5mn ft3/day of natural gas production – a weighted average working interest of 8.4% - in fields operated by Neptune Energy.

Tenaz has also acquired positions of 9.85% and 5% in five non-producing licences, including in the undeveloped Rembrandt and Vermeer oil discoveries operated by Wintershall Dea.

Total reserves of all the upstream assets have been assessed at 809,000 barrels of oil equivalent (boe) of proved developed producing reserves (99% natural gas) and 1.2mn boe of total proved plus probable reserves (also 99% natural gas).

The acquired private company is also partnered with Neptune Energy (as operator), XTO Netherlands and the Netherlands government in the L10 Carbon Capture and Storage (CCS) Project, which expects to begin front end engineering and design (FEED) work at the beginning of 2023, with a final investment decision anticipated near the end of next year.

The 30-year project envisions the capture and storage of 5-8mn metric tons/year of CO2 from industrial emitters in and around the Port of Rotterdam.

Alongside the upstream asset acquisition, Tenaz said it had acquired am 11.34% ownership interest in Noordgastransport BV, which holds one of the largest gas gathering and processing networks in the Dutch North Sea. It is one of two networks in the sector certified as fit for service in transportation of green hydrogen.

Consideration for the acquisition is in the form of Tenaz’s assumption of a proportionate share of future decommissioning liabilities for the acquired assets, estimated at C$58.9mn (€40.9mn) at January 1, 2022, decreasing to C$16.9mn at January 1, 2023.