Shell is selling a 20% stake in its wholly-owned Groundbirch shale gas asset in British Columbia to PetroChina.
The duo signed a binding agreement last week to advance development of Groundbirch, potentially opening the door for the export of Canadian LNG to Asian markets.
The transaction has been approved by both governments, said PetroChina senior assistant secretary to the board Mao Zefeng. Neither company would reveal the price tag but FinanceAsia estimated the acquisition at more than US$1 billion.
Groundbirch has the potential to produce 1 billion cubic feet per day for an estimated 40 years.
Shell will remain operator and production will continue to supply North American customers but LNG exports are being mulled over the long term.
