WESTCOAST Energy of Canada and China National Petroleum Corp (CNPC) have agreed to build, own and operate jointly a gas-fired co-generation facility in Shaanxi province. A letter of intent has been signed by Westcoast's wholly owned subsidiary Westcoast Power, and the Changqing Petroleum Exploration Bureau, a subsidiary of CNPC. The US$20 million venture will supply electricity and process steam for the bureau's Jingbian gas field and Ansai oil field. Michael Phelps, Westcoast chairman and chief executive, said the joint venture was the company's first investment in China. While the project was relatively small, it would give Westcoast operating experience in China so it could take part more actively in the country's growing natural gas industry.