Centrica, Qatar Petroleum JV Buys Shell's Canada Gas Assets

CQ Energy Canada Partnership (CQE), the joint venture between Centrica and Qatar Petroleum International (QPI), the international arm and wholly owned subsidiary of Qatar Petroleum (QP), has agreed to acquire Shell’s natural gas assets in Canada for C$50 million.

As part of the transaction Shell will also receive CQE’s interest in the Burnt Timber gas processing plant and its interest in the Waterton undeveloped lands in South West Alberta, Centrica said in a statement Thursday.

CQE estimates that the assets to be acquired have 2P reserves of 90bcfe and will increase the partnership’s production in the region by approximately 24mmcfe/d.

The effective date of the transaction is 1 March 2014.

In December 2011, Centrica and QPI signed a Memorandum of Understanding to seek opportunities to invest jointly in energy-related investments.

Last week, Centrica and Qatar Petroleum International announced they had reached an agreement whereby QPI will acquire 40 per cent of Centrica’s wholly owned Canadian natural gas business for C$200 million.

The assets will also be placed into the CQ Energy Canada Partnership.