Korea Gas to invest $1.1 billion in Canadian gas fields
02 Mar 2010
The state-run gas agency Korea Gas Corp. will join hands with Calgary-based Encana Corp, the biggest natural gas company in North America, to invest $1.1 billion over the next five years to develop natural gas fields in Canada, South Korea's Yonhap news agency reported on Sunday.
Under the deal, Korea Gas will acquire a 50-per cent stake in three gas fields in the lucrative north-east British Columbia.
According to initial estimates, the Asian gas giant will produce 20 million tonnes of natural gas from the area over a period of 40 years.
Gas-hungry South Korea, which consumes around 25 million tonnes of natural gas a year, relies heavily on imports.
The deal will enable the nation to extract about 3.5 per cent of its total gas use from its own activities at home and abroad, the company said.
Korea Gas has agreed to invest in drilling and development of 72,000 hectares, nearly 20 per cent of EnCana's portfolio in the Montney and Horn River plays.
