Malaysian natural oil and gas company Petroliam Nasional Bhd. (Petronas) has agreed to pay $5.35 billion in cash for Canadian natural gas counterpart Progress Energy Resources Corp. (TSE:PRQ), the companies said Thursday.

Petronas will build a liquified natural gas plant in British Columbia, Canada, to export natural gas produced by Progress Energy Resources wells to Asian markets.

Shares of Progress Energy Resources rocketed 74 percent, or $8.52, to $20.06 in afternoon trading.