Petronas in $1.1bn Canada shale buy

Petronas: buys into Canadian shale

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By News Wires

 02 June 2011 17:24 GMT

Progress Energy Resources said today it will sell a 50% stake in Canadian shale gas assets to Malaysia's Petronas in a C$1.07 billion ($1.1 billion) deal that intensifies the race to open up lucrative markets in Asia.



Progress and Petronas will also study the feasibility of a new LNG terminal on Canada's West Coast as a way to secure higher prices for shale gas produced from fields in northern British Columbia's Montney region, Reuters reported.

North American gas prices are stubbornly weak due to the rapid development of shale supplies throughout Canada and the United States and because of static domestic demand.

It is the Malaysian state oil company's first foray in Canada and will allow Progress to develop its shale gas holdings at a fraction of the…

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