SEOUL (Commodity Online) : South Korea's state run Korea Gas Corporation (Korea Gas) said it will invest $1.1 billion to jointly develop natural gas fields in Canada with local firm Encana Corp.

In a statement issued here, it said the deal will secure enough gas shipments to South Korea.

Under the deal with the biggest natural gas company in North America, Korea Gas acquired a combined 50 per cent stake in three oil fields in northeast British Columbia and will start extracting 1.1 million tons of natural gas every year for 40 years beginning in 2017, the company said.

In the meantime, Korea Gas will invest $1.1 billion to build gas exploration and production facilities, it said.

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