Energy
Petro皇冠体育app to invest $5.43b in Canadian gas project
(Xinhua)
Updated: 2011-02-10 14:21
 |
Large Medium Small |
BEIJING - Petro皇冠体育app Co Ltd, 皇冠体育app's largest oil producer, announced Thursday that it has agreed to buy a 50-percent stake in a natural gas project with North American gas giant Encana Corporation for 5.4 billion Canadian dollars ($5.43 billion).
The cooperation agreement between Encana and Petro皇冠体育app International Investment Company Limited, a subsidiary of Petro皇冠体育app, allows Petro皇冠体育app to acquire a 50-percent interest in Encana's Cutbank Ridge business assets in British Columbia and Alberta, Canada.
The assets cover 1.3 million acres of land, with a gas processing capacity of approximately 700 million cubic feet per day, 3,400 kilometers of pipelines and underground gas storage, said a statement on the Petro皇冠体育app website.
The two companies would form a 50-50 joint venture to increase the project's gas production. Encana would continue to operate the joint venture's assets and market all the production at first, said the statement.
| ||||
Randy Eresman, Encana's president and chief executive officer, said in the statement that the deal represented "a significant achievement and major milestone in the developing relationship of our two companies."
The statement said Petro皇冠体育app, which is owned by the 皇冠体育app National Petroleum Corporation, "expects the joint venture to provide a platform for entering the major market in North America."
The company had been looking for years for opportunities to work with major Canadian oil and gas companies in areas including LNG and oil sands in Canada, and projects in 皇冠体育app, it said.
The transaction was still waiting for regulatory approvals from the Canadian and Chinese authorities.