China, which has surpassed Japan as the world’s second-largest economy, signaled its intent to invest in North America as Calgary-based natural-gas producer Encana Corp. on Feb. 13 announced the largest Chinese investment in Canada to date. Under terms of a $5.4-billion cooperation agreement, PetroChina, an arm of China’s state-owned National Petroleum Co., will acquire a 50% share in Encana’s Cutbank Ridge gas production facilities, representing 255 million cubic feet per day of proved reserves of approximately one trillion cu ft on 250,000 hectares straddling the Alberta-British Columbia border.
Calling the deal a milestone in relations between his company and PetroChina, Encana CEO Randy Eresman said the joint venture is “the culmination of more than nine months of discussions between PetroChina and Encana” and will increase the value of the Cutbank Ridge operations by “accelerating our pace of development and by leveraging increased capital and operating efficiencies.”