LONDON, May 15 (Reuters) – A joint venture between Britain's Centrica and Qatar Petroleum has agreed to buy a number of Canadian natural gas assets from Shell for C$50 million in the entity's first joint acquisition since it was created a year ago.
The takeover of Shell's assets will increase the joint venture's production in Canada by around 24 million cubic feet equivalent per day and is in line with its strategy to buy gas projects.
As part of the deal, Shell will take over the joint venture's stakes in the Burnt Timber gas processing plant and Waterton undeveloped lands in southwest Alberta, the companies said.
The joint venture, called CQ Energy Canada Partnership, was created through Centrica and Qatar Petroleum's C$1 billion acquisition of Suncor assets in Canada in April last year.
The venture, 60 percent owned by Centrica, gives the British firm a cash-rich partner and Qatar Petroleum benefits from an experienced ally helping it to expand internationally.
Last week, Centrica announced Qatar Petroleum had bought a 40 percent stake in its Canadian gas business for C$200 million, which was subsequently placed into the joint venture.
(Reporting by Karolin Schaps; editing by Jason Neely)
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