Skip to main content

A drilling rig in the Montney Shale, near Fort St. John, B.C.

Jason Dziver/Talisman Energy

Ottawa has approved the acquisition by Malaysia's Petronas of British Columbia natural gas assets from Talisman Energy Inc., a $1.5-billion deal announced in November.

Industry Minister James Moore said the transaction is likely to have a net benefit to Canada due to commitments by state-owned Petronas. They are in the areas of Canadian participation, commercial operations, transparency, adherence to domestic laws and free market principles as well as capital investments, Mr. Moore said in a statement.

Petronas, which acquired Progress Energy in late 2012, bought assets in the Farrell Creek and Cypress areas of British Columbia that are part of the prolific Montney formation.

Story continues below advertisement

Petronas is leading a group of international companies in a plan to build a liquefied natural gas plant on the West Coast for exports to Asia.

Report an error Editorial code of conduct Licensing Options
As of December 20, 2017, we have temporarily removed commenting from our articles. We hope to have this resolved by the end of January 2018. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.