Korean Gas Corp., the world’s biggest LNG purchaser, is buying into a northeastern B.C. shale gas play in a move that proponents say promises to accelerate LNG exports to Asia.
Korea Gas is buying a 5% stake of the Cordova Embayment project from Mitsubishi Corp., the equal joint-venture partner of Calgary’s Penn West Exploration in the play. Mitsubishi will transfer one-tenth of its share of the project to Korea Gas. Mitsubishi estimates the shale play could hold 5-8 Tcf of gas.
Penn West Exploration said the entrance of Korea Gas should speed development. Western Canada lacks pipeline capacity and LNG liquefaction and export facilities to get its massive unconventional gas reserves to market, but a number of midstream and upstream projects are proposed.
Meanwhile, Shell Canada has partnered with China National Petroleum Co., Korea Gas Corp. and Mitsubishi Corp. to consider an LNG export facility in British Columbia in an effort to open international markets for Western Canadian gas.