Canada: gas field development

Korea Gas Corp. has entered into an agreement with EnCana Corp. to explore and develop the latter’s natural gas fields in British Columbia. Kogas is likely to invest USD 1.1 billion over five years in this venture. The deal allows Kogas to control 50% of the gas fields. Kogas will be involved in the joint development of three EnCana natural gas fields in NE British Columbia. The company is likely to source about 20 million tons of natural gas from this venture, which is reported to have a lifespan of 40 years. Starting 2017, the fields will be capable of yielding more than 1 million tons of natural gas per year. Kogas’ investments will be made primarily toward the development of 72,000 hectares of gas-rich terrain, which accounts for about 20% of EnCana’s holdings in the Horn River and Montney regions. EnCana is already working on the Horn River Basin Pipeline venture with Apache Corp. (Houston, Texas), which holds a 50% share in the project. Nine production wells have been established, and the project is expected to be functional by mid-2011. The USD 340 million pipeline venture, which stretches 155km, will comprise both new and existing pipeline networks to transport natural gas to Alberta. EnCana also holds up to 1 million acres of land in the Cutbank Ridge of British Columbia, which it plans to develop over the long term.
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