Encana Oil & Gas has completed an upstream joint-venture development agreement with Portland-based Northwest Natural Gas.
Under the terms of agreement, Northwest Natural will spend $250m to earn a working interest in sections of Encana's Jonah field in Wyoming, US.
Northwest Natural will invest $45m-$55m per year for the next five years to earn a working interest in sections of the Jonah natural gas field.
This deal will help Northwest Natural to secure a long-term natural gas supply at the cost of production rather than at future market prices.
Encana executive vice-president Renee Zemljak said the transaction provides attractive investment opportunities and reliable, economic supplies of natural gas to a variety of counterparties.
"These transactions help serve our customers' needs and accelerate the value recognition of Encana's enormous resource potential," said Zemljak.