Centrica JV to buy Canadian natural gas assets from Shell

15th May 2014 09:33

British Gas owner and energy group Centrica is to buy a package of natural gas assets in the Foothills region of Alberta, Canada.CQ Energy Canada Partnership (CQE), the joint venture between Centrica and Qatar Petroleum International (QPI), is buying the assets from Royal Dutch Shell's Canadian subsidiary, Shell Canada Energy, for C$50m (£27m).As part of the deal, Shell will also receive CQE's interest in the Burnt Timber gas processing plant and its stake in the Waterton undeveloped lands in south-west Alberta."CQE estimates that the assets to be acquired have 2P reserves [proven plus probable] of 90bn of cubic feet equivalent (cfe) and will increase the partnership's production in the region by approximately 24m cfe per day," Centrica said.Centrica and QPI set up their joint venture in December 2011. Last week, the companies reached an agreement whereby QPI will acquire 40% of Centrica's Canadian natural gas business for C$200m (£107m). These assets will also be placed into CQE.BC