Ladouceur explained that there are a few reasons for the increasing demand, not the least of which is the high level of industry activity in the Montney, where many companies are chasing more profitable natural gas liquids while dry natural gas prices remain below $4.00 per million cubic feet (mmcf).
"Many of these new wells that are being drilled require some form of stimulation," he said. "That's one reason why we're seeing an increase in demand for nitrogen."
Additionally, increasing scrutiny on water management and fracturing fluid content is encouraging producers to move to liquid nitrogen, according to Ladouceur.
"There's a couple of alternatives when you're drilling wells into these formations," he said. "And one of the alternatives is the use of water as opposed to using some kind of a cryogenic fluid or a hydrocarbon. And there are some issues that are happening in the area with respect to use of water and disposal of water. And so companies are finding that rather than trying to source massive quantities of water and figure out where to dispose of it, it's much easier to use something like liquid nitrogen, which just literally dissipates back into the atmosphere after you do the frac."
Ladouceur indicated that some companies are also seeing better results with liquid nitrogen than with water or other alternatives such as carbon dioxide and propane.
"Nitrogen goes down as a gas and it doesn't create any issues with the well productivity," he said.
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