South Korean gas company to help develop EnCana-owned gas fields in British Columbia

South Korean gas company to develop in Canada

CALGARY, Alberta — South Korea’s state-run gas company is making a $565 million Canadian ($543 million) investment in two northeastern British Columbia natural gas plays.

Korea Gas Corp. has signed a three-year deal with Calgary-based gas giant EnCana Corp. for a 50 percent interest in land blocks in the Montney and Horn River Basin shale formations.

EnCana spokesman Alan Boras said Monday the deal gives EnCana the opportunity to accelerate development faster than it would have otherwise.

Korean news reports Sunday said the state-owned Korean company envisions spending $1.1 billion over five years in those lands, though the actual deal signed with EnCana covers a smaller investment over a shorter time frame.

Korea is a voracious consumer of natural gas.