China and Canada, a new era of cooperation

Encana Corp., Canada's largest natural gas producer, and state-owned China National Petroleum Corp (CNPC) signed a letter of intent on Thursday to jointly develop shale-gas properties in Canada’s northern British Columbia, according to an announcement released by Encana.

The companies didn't disclose financial or other details of the planned cooperation. But forming a joint venture (JV) will be of the highest possibilities for their collaboration, which may help Encana's dream of hitting earnings of $1 to 2 billion from its JVs come true.

Under the proposed terms of the agreement, Encana will operate the properties while CNPC will provide capital. The JV is to be established in a few months time.

During President Hu Jintao's encounter with Canadian Prime Minister Stephen Harper, he stressed Sino-Canadian cooperation in energy resources.

Source: Global Times