The assets include 1.3 million acres of land, approximately 700mmcf/day processing capacity, 3,400km of pipelines and an underground gas storage.
Separately, the two companies will, in proportion to their investment, each invest 50% into a joint venture to increase natural gas production.
The company said that Encana will continue to operate the joint venture’s assets and market all the production at first.
PetroChina expects the joint venture to provide a platform for entering the major market in North America.
The transaction is subject to due diligence, signing of the joint venture agreement, and approval by the company’s board of directors as well as that by Canadian and Chinese authorities.
