Encana to double liquids output as gas prices stay weak

Encana Corp. (ECA-T 18.15 -1.33 -6.83%), Canada’s largest natural gas producer, said output of crude oil and natural gas liquids such as ethane and propane is expected to nearly double this year, helping the company reduce its dependence on low-margin natural gas.

The company plans to direct 80 percent of its capital budget this year towards drilling for oil and gas-liquids. It has a capital spending plan of $3 billion US to $3.2 billion for 2013. Gas production is expected to change little this year.

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New production facility to be operational by end of 2013

Encana Corporation, one of North America’s largest natural gas producers, has announced it will build a liquefied natural gas plant in the Grande Prairie area in partnership with Ferus LNG Inc.

The 190,000-litre-per-day LNG production facility will be located close to Grande Prairie, however the company isn’t yet revealing its exact location.

“We can’t give you the exact location yet,” said David Hill, vice president of operations for Encana. “We just don’t want to jeopardize the final negotiations. We have a couple of parallel tracks that we’re pursuing,” adding the final location will be announced within 30 days.

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