Awwal 07, 1432, Feb 10, 2011, SPA -- State-run energy giant PetroChina has agreed to buy a 50-per-cent stake in a Canadian natural gas project for 5.43 billion dollars, the company said Thursday, according to dpa. PetroChina International Investment Co Ltd said it had signed a deal to create a joint venture in the Cutback Ridge project, located in British Columbia and Alberta and run by Canada's Encada Corp. "PetroChina expects the joint venture to provide a platform for entering the major market in North America," the Chinese company said in a statement. Randy Eresman, Encana's chief executive, said the agreement was the culmination of more than nine months of discussions and was a "major milestone in the developing relationship of our two companies." The deal was subject to regulatory approval by Canadian and Chinese authorities, the two sides said. An Encana statement said the Cutback Ridge project has current daily production of about 255 million cubic feet (7.2 million cubic metres) equivalent per day and proven reserves of about 1 trillion cubic feet of natural gas equivalent. It covers 530,000 hectares of land, with a daily processing capacity of about 700 million cubic feet, underground gas storage and 3,400 kilometres of pipelines. The two firms said they also planned to invest in a 50-50 joint venture to increase natural gas production at the project. "The joint venture is expected to develop existing Encana lands at a rate that would be faster than would be achieved without the additional investment," Encana said.
