PETRONAS Buys Canadian Montney Shale Gas Assets
PETRONAS has reached an agreement to form a strategic partnership with Canada-based Progress Energy Resources Corporation to acquire 50% of the latter's shale gas assets in its Altares, Lily and Kahta properties for CAD$1.07 billion (RM3.32bil).
PETRONAS will develop the Montney shale assets located in northeast British Columbia. The agreement also reflects the desire by both parties to explore additional opportunities to develop liquefied natural gas (LNG) export capacity in British Columbia.
“The assets included in the transaction cover approximately 150,000 gross working-interest acres of land with an estimated contingent gas resource of more than 15 trillion cu ft. The assets will be operated by Progress,” said PETRONAS.
PETRONAS views the acquisition as a highly attractive opportunity, paving its entry into the North American shale gas industry while at the same time further strengthening its position as a leading global LNG player.”
As part of the acquisition, PETRONAS and Progress have agreed to establish an LNG export joint venture to conduct a feasibility study on the economic viability of an integrated LNG export facility in western Canada.
“This could provide a strategic alternative to the traditional North American pipeline gas market,” PETRONAS said.
The two companies have also agreed to collaborate on other potential natural gas opportunities in western Canada.
PENTRONAS isn’t the only Asian oil major venturing into North American shale plays. To list a few in a string of investments - PetroChina recently bought a 50 percent stake in Encana’s western Canada natural gas deposits; Korea National Oil Corp signed a $1.55 billion joint venture with Anadarko Petroleum Corp (read more about this here); and Chesapeake Energy Corp. sold part of its assets for $1.3 billion to China’s biggest offshore oil producer, Cnooc Ltd.