PETRONAS enters Canada with $1.1bn shale gas deal; eyes LNG

03 June 2011 02:32  [Source: ICIS news]

TORONTO (ICIS)--PETRONAS will invest Canadian dollar (C$) 1.07bn ($1.10bn) to help develop shale gas assets in Canada's western British Columbia province, the Malaysian energy and petrochemicals major said late on Thursday.
PETRONAS said it reached a strategic deal to acquire 50% of the interest held by Canada's Progress Energy Resources in three shale gas areas with total estimated gas resources of more than 15 trillion cubic feet.
As part of their deal, PETRONAS and Progress will study the viability of a liquefied natural gas (LNG) export facility in western Canada.
The LNG project could provide "a strategic alternative to the traditional North American pipeline gas market,” PETRONAS said. Canada exports large volumes of natural gas via pipeline to the US market.
The deal is expected to close in the third quarter of 2011.
PETRONAS' move follows similar recent deals for Canadian oil and gas resources by PetroChina, Sinopec, Sasol and others.
($1 = C$0.97)

By: Stefan Baumgarten
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