South Korea's state-run Korea National Oil Corp. (KNOC) and STX Energy Co. agreed to join hands in importing natural gas liquid (NGL) and crude oil from Canada, Yonhap News Agency reported Tuesday.
Harvest Energy, KNOC's Canadian unit, and STX Energy also reached an agreement to work together for the development and marketing of shale gas and the operation and maintenance of shale gas production facilities, the report said.
Shale gas is natural gas deposited in shale formation.
STX Energy said the agreement will help it raise the profitability of its Maxhamish gas field in northeastern British Columbia of Canada.
The company bought the gas field from Canada's EnCana in August 2010.
They predicted that if the shale gas infrastructure is established, the two companies will be able to import 500,000 barrels of NGL and 800,000 barrels of crude oil from Canada per month.