PetroChina unit inks Canadian pipeline deal

A subsidiary of PetroChina (PTR.NYSE, 0857.HKG, 601857.SH, PC6.FRA) signed a deal with Calgary-based TransCanada (TRP.NYSE, TRP.TSE, TRS.FRA) to develop a US$3 billion oil pipeline to ship oil from the Canadian oil sands, Bloomberg reported. Gas network operator Phoenix Energy Holdings, a unit of PetroChina, said in a statement that each company will hold 50% of the proposed Grand Rapids Pipeline, which will transport crude within Alberta from oil-sand projects near Fort McMurray to provincial capital Edmonton. The pipeline is expected to commence service in 2017. PetroChina’s two oil-sand developments near Fort McMurray are expected to produce 400,000 barrels a day, according to websites for the projects. The deal gives Phoenix the biggest stake held by a Chinese company in a Canadian pipeline, according to Bloomberg data.