Globe and Mail reports that Canadian Natural is in negotiations to purchase Tourmaline's Natgas portfolio.

Canadian Natural Resources has entered into negotiations to buy a portfolio of natural gas properties worth more than $1 billion from Tourmaline Oil Corp., the Globe and Mail reported Wednesday. The report cited two sources who are familiar with these negotiations.

On the website of Competition Bureau Canada, it is stated that Canadian Natural filed paperwork for approval of a deal with Tourmaline?on?December 30. However, details of this potential deal had not been made public.

Tourmaline is one of the largest natural?gas producers within Canada's Montney basin. This massive?shale?play is already the focus of a flurry M&A deals as Canadian producers look to increase their supply for Canada's LNG export sector.

About 50% of Canada's natural gas production is produced in the region.

Globe and Mail reported that Canadian Natural, Canada's largest shale producer is looking for preliminary regulatory feedback regarding a possible acquisition of the Tourmaline assets in the Montney basin, located in Alberta's Peace River region.

Canadian Natural and Tourmaline didn't immediately respond to comments. Reporting by Vallari Shrivastava, Bengaluru. Editing by Vijay Kishore

(source: Reuters)