Direct Energy Parent Joint Venture to Acquire Further Gas Assets In Canada

CQ Energy Canada Partnership (CQE), the joint venture between Centrica plc and Qatar Petroleum International (QPI), has agreed to acquire a package of natural gas assets in the Foothills region of Alberta from Shell Canada Energy for C$50 million (£27 million).

As part of the transaction Shell will also receive CQE’s interest in the Burnt Timber gas processing plant and its interest in the Waterton undeveloped lands in South West Alberta.

CQE estimates that the assets to be acquired have 2P reserves of 90bcfe and will increase the partnership’s production in the region by approximately 24mmcfe/d.

Previously, Centrica plc and Qatar Petroleum International announced they had reached an agreement whereby QPI will acquire 40 percent of Centrica’s wholly owned Canadian natural gas business for C$200 million (£107 million). The assets will also be placed into the CQ Energy Canada Partnership.