In a Thursday statement, Canada's biggest natural gas producer Encana Corp. revealed that it had signed a $2.2 billion deal with China's state-owned PetroChina --- an agreement which will pave the way for exploring and developing shale gas in Alberta.

Revealing that the multi-billion joint venture will speed up the development on nearly 445,000 acres in Alberta's Duvernay shale, Encana said in the statement that PetroChina's wholly-owned subsidiary, Phoenix Duvernay Gas, will make a $2.2 billion investment for a non-controlling 49.9 percent interest in the emerging Duvernay formation.

Disclosing the details of Phoenix Duvernay Gas' investment, Encana said that while $1.18 billion will be paid when the deal materializes; an amount of $1 billion will be payable by the company over the next four-year period, in the form of carrying 50 percent of Encana's development costs.

In addition, Encana also said that the two companies intend making a total investment of $4 billion in new drilling, completion and processing facilities in the expansive play. According to Encana's estimates, its holdings in the Duvernay joint venture lands contain approximately 9 billion barrels of oil equivalent.

Noting that "Phoenix's investment demonstrates the tremendous value that Encana has created," Randy Eresman - President and CEO of Encana - said that the investment will enable his company to "accelerate the pace at which the full production potential of our Duvernay lands can be achieved."