Japan moves deeper into Canadian gas market

April 30, 2013 at 6:36 AM   |   Comments

CALGARY, Alberta, April 30 (UPI) -- An agreement by Japan Petroleum Exploration Co. to take a 10 percent stake in gas assets in Canada is indicative of global interest, an executive said.

JAPEX Montney, the Canadian subsidiary of the Japanese company, closed a deal with a group led by Progress Energy Canada Ltd. and Malaysian parent Petronas to buy a 10 percent share in natural gas assets in British Columbia.

Progress Energy President Michael Culbert said the Japanese investment in British Columbia "clearly defines" the region as having a global appeal.

"Progress has increased its development pace in northeastern British Columbia in 2013, building new capacity to supply Pacific Northwest LNG with abundant Canadian natural gas for export beginning in late 2018," he said in a statement.

The Japanese company agreed to buy a share of liquefied natural gas production for the next 20 years. Japan's use of natural gas increased in the wake of the Fukushima nuclear disaster in 2011.

Culbert said the LNG sale to Japan was the first of many planned for Asian consumers. Canadian Prime Minister Stephen Harper has sought to bring Asian and Canadian energy markets closer.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
Celebrity Couples of 2014 [PHOTOS]

Celebrity Couples of 2014 [PHOTOS]

Most Popular
Northrop Grumman developing reusable space plane for lifting spacecraft into orbit
Construction on Russian gas line to China slated for September
Corona Extra recalled due to glass particles in beer
Navy to test Lockheed Martin's FORTIS exoskeleton
Final builder sea trials for Australian landing helicopter dock ship
Trending News