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Canada's Tamarack Valley shutters production after Alberta gas plant fire
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Canada's Tamarack Valley shutters production after Alberta gas plant fire
Apr 15, 2024 5:33 PM

April 15 (Reuters) -

Canadian oil and gas producer Tamarack Valley Energy ( TNEYF )

has temporarily shut in about 6,200 barrels of oil

equivalent per day (boepd) of production after a fire at a

third-party gas plant at Mitsue, Alberta, CEO Brian Schmidt said

on Monday.

The plant, which processes Tamarack's gas from various

batteries in the Nipisi area, was shut down on Saturday.

Schmidt declined to say which company owns the affected

gas plant.

Tamarack said in a statement it is considering several

options to accelerate the resumption of its production as the

plant operator evaluates how long it will take to restart the

facility.

"I suspect from the fire and equipment it's not going to

be a short time," Schmidt told Reuters in a phone interview.

Tamarack's options include re-routing its gas to other

processing plants and seeking relief from an Alberta Energy

Regulator directive that limits gas flaring, he added.

The volumes temporarily shut-in amount to roughly 10% of

Tamarack's total production, RBC Capital Markets analyst Luke

Davis said in a research note.

"We expect the stock to lag peers until further clarity

is provided," Davis wrote.

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