Penn West has announced a joint venture with Japanese partner Mitsubishi Corporation in developing a shale gas formation in northeastern British Columbia. Penn West will contribute 50% of its interests in the Cordova Embayment area, as well as conventional natural gas assets in the Wildboy region. Mitsubishi will provide $250 million in cash and invest $600 million in exploration development expenditures. Penn West will operate the assets.
TransCanada Pipeline is currently building the Groundbirch pipeline which will bring natural gas produced in the Montney shale gas formation in northeast British Columbia across the provincial border to the Alberta pipeline network.