Suncor Energy Inc will have close to 41 percent stake in PetroNor, which is one of the leading distributors of petroleum products in Quebec region. The company is owned by James Bay Crees.
The fuel to PetroNor will be supplied by Suncor and it will be distilled from the Suncor Montreal refinery. Ted Moses, President of PetroNor said that the arrangement brings long-term growth opportunities for both Northwestern regions of Quebec as well as PetroNor.
Suncor executive Kris Smith said that the deal is an enhancement of the 14-year relationship with PetroNor and this will grow both the businesses in the future.
The financial details of the deal were not yet disclosed to the media and it is likely to be announced in the near future. PetroNor has been actively involved in the distribution of different petroleum products in the Abitibi Temiscamingue regions of Quebec. Along with that, it also has a good presence across different regions of the James Bay area.
With this deal, Suncor Energy will become an equity partner with PetroNor and this can open up the market in this region in a big way. Both the companies expect the deal to bring in new growth to the sector.