Trinidad Drilling Ltd. to build new rig for northern BC LNG project
The new rig is expected to be delivered in late 2014.
CALGARY – Trinidad Drilling Ltd. has signed a contract to build one of Canada’s largest and most technically-advanced land rigs to drill natural gas in the Liard Basin, an area being developed to supply gas for the future liquefied natural gas (LNG) plants proposed for the west coast of BC.
The new rig will be constructed at Trinidad’s in-house manufacturing facility in Nisku, Alberta and will be equipped with the company’s automated rig moving system. The rig will be a 1.25 million pound hook load, 3,000 horsepower AC rig with a depth capacity of 8,000 metres (26,250 feet). The rig will be operating under a five-year, take-or-pay contract with a minimum of 350 days per year and is expected to be delivered in to operations in the second half of 2014.
There are several current proposals to build LNG plants along the BC coastline with anticipated start up time lines from 2015 and beyond. These plants are expected to produce LNG for export to Asian markets where natural gas is sold at a premium to North American prices.
Trinidad’s divisions operate in the drilling and barge-drilling sectors of the North American oil and natural gas industry with operations in Canada, the US and Mexico. The company has expanded its 2013 capital expenditure program to $140 million in response to anticipated growth and demand for its drilling rigs.