Toyota Tsusho of Japan Invests $600 Million in Encana Coalbed Methane Development
Japan-based Toyota Tsusho Corporation announced that it has reached an agreement with Encana Corporation, a Calgary-based producer of oil, natural gas and natural gas liquids, to acquire a 32.5% interest in Encana’s coalbed methane (CBM) project. Toyota Tsusho will pay C$602 million to acquire the interest and in capital investments over the coming seven years. Toyota Tsusho has established a wholly-owned subsidiary, Toyota Tsusho Wheatland Inc., to hold and manage the acquisition. This CBM project covers about 480,000 acres in and around Wheatland County in southern Alberta, Canada and is Canada’s largest CBM resource play. Toyota Tsusho is a general trading company.