The City of Medicine Hat has signed an agreement that will extend the supply of natural gas to the city limits after 2023 – an effort that supply officials say is necessary to cope with the growth of its power plant and the private sector. John Floren, President and CEO of Methanex, commented: “A long-term agreement to support our Medicine Hat plant strengthens a competitive position in terms of costs for years to come. We are pleased to have reached this agreement with Painted Pony, a company with a highly competitive cost position in Montney`s productive game in Western Canada. This agreement, combined with the refurbishment of our De Medicine Hat unit in 2015, consolidates the long-term future of Methanex methanol operations in Canada. Vancouver, British Columbia, 08.11.2017 (GLOBE NEWSWIRE) — Methanex Corporation (the “Company”) (TSX:MX) (NASDAQ:MEOH) and Painted Pony Energy Ltd. today announced the implementation of a 14-year agreement to supply most of the natural gas needed to install existing 600,000 tonnes of methanex methanol in Alberta. The agreement will begin in 2018 and includes a competitive fixed price for natural gas. Contract volumes will be lower in previous years to allow Methanex`s existing futures contracts and will increase from 2023 to approximately MMbtu/day, or about 80-90% of the facility`s natural gas demand. Two major natural gas producers in southeastern Alberta met the terms of a property tax payment agreement starting in 2019 for several months last winter. An initial agreement, adopted this week at the regular council meeting, calls for the city to negotiate a 15-year contract in 2023 for a take-out or pay-off contract if Nova is launched into a physical increase in service capacity. Alberta`s self-proclaimed “Gas City” is cutting off more than 2,000 wells due to weak market conditions. Urban propaganda was so effective that it brought the settlers by the hundreds; Between 1911 and 1913, the population nearly tripled. The Alberta Bible Society has deemed it necessary to distribute Bibles in fifteen different languages! By the end of 1913, the city claimed to supply thirty major industries with twenty natural gas wells.
The gas was so abundant that it was sometimes problematic; On more than one occasion, a bag broke when someone dug a new well. Its abundant supply has allowed the city to create its wharves and street corners in the downtown core and become the first urban area in Western Canada with its own gas supplier. Ripley`s Believe it or Not defied its readers by claiming that the city had burned its gas fires 24 hours a day. (It was cheaper to keep them permanently than to pay someone to turn any large new electricity user that could also be housed with similar measures,” Pancoast said. This unexpected discovery was then considered an obstacle. The search for coal and water sources over the next decade has led to the development of other natural gas sources as well as gas sands that are expected to be developed in the coming years. In the end, it turns out that Medicine Hat was sitting on more than 20.5 billion cubic meters of natural gas deposits. Most of Alberta`s major oil deposits are located in the southeast, near Medicine Hat, Brooks and Lethbridge. Oil and gas wells are also located in nearby southwestern Saskatchewan.