PetroChina buys stake in Peace Region shale gas project

The value of the deal is unknown, but it's been rumoured to be over $1 billion.

This transaction follows an interview last September in which Shell Canada President Lorraine Mitchelmore warned that Western Canadian producers would need to expand to Asian markets. A similar deal between PetroChina and EnCana was called off last summer, that would have given the Chinese company a 50 per cent stake in EnCana's Cutbank Ridge business assets for $5.4 billion.

According to Reuters, PetroChina and other Chinese state oil giants, have been looking all over the world for reserves to fuel China's rapidly-growing economy. Shale gas and oil sands assets in North America have been of particular interest in the past year.

Shell says Groundbirch's natural gas output is 125 million cubic feet a day.

About the Author

Erica Fisher

Erica is a reporter for Moose FM and in Fort St. John, B.C. She grew up in Victoria, B.C. and received her Bachelor's Degree in Journalism from Concordia University in Montreal, Quebec.