North American players seek Asian lifeline

Shaun Polczer, CALGARY: Despite battered North American natural gas markets, Asian buyers continue to prop up struggling producers with multi-billion dollar production ventures. Japan’s Mitsubishi is the latest to reaffirm its shale-gas aspirations with its $2.8 billion entry into Encana’s Cutbank Ridge play in northeast British Columbia. The deal sees Mitsubishi gain 40% of  409,000 undeveloped acres at a time when Encana, Shell and others are pressing ahead with liquefied natural gas (LNG) export plans off Canada’s west coast. For Encana, it gains a much-needed cash injection at a time when battered North American gas markets have taken a toll on its bottom line. “Mitsubishi looks forward to tapping new natural-gas supplies for the long-term development and eventual delivery to world markets," said Jun Yanai, Mitsubishi's executive vice-president who oversees the conglomerate’s energy division. North American producers struggle The Mitsubishi deal overshadowed Encana’s weak financial results, which took a hit...