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Canada’s LNG plans give India gas pains
Proposed changes in the way Canada deals with foreign investors may push some Indian companies away from its energy sector, a diplomat said.
Canadian Finance Minister Jim Flaherty last month introduced legislation that would change rules on how foreign companies can move in on Canadian businesses. The law was proposed after China National Offshore Oil Corp. took over oil and gas producer Nexen and Malaysia's Petronas took over Progress Energy Corp.
High Commissioner of India to Canada Adm. Nirmal Verma said the measure could discourage Indian energy companies from eventual liquefied natural gas projects in Canada.
"Indian companies look forward to opportunities to acquire equity interests in some of the upcoming LNG projects in Canada," he was quoted by Bloomberg News as saying. The new rules, if passed, could "add considerable uncertainty for potential investments," he added.
State-controlled energy companies from India are among those looking for Canadian natural gas to for heat and fuel. Asian rivals from China, South Korea and Malaysia are ahead of India in prospects for LNG, however, Bloomberg reports.
Meanwhile, the Canadian Consul General Richard Bale in Mumbai said India's bilateral trade with Canada is expected to grow to $15 billion by 2015 from the present $5.8 billion.
"Currently the bi-lateral trade stands at 5.8 billion dollars and is expected to grow to $15 billion by 2015. Currently there are 700 Canadian companies in India," Bale said at a conference on Renewable Energy.
During the India visit of Canadian Prime Minister last November, both the Prime Ministers set an ambitious target to conclude a Comprehensive Economic Partnership Agreement ( CEPA) by the end of the year that would boost the Indian and Canadian economics by $6 billion and result in a significant increase in bilateral trade, Bale said.
We believe that by combining Canadian technology and expertise with Indian talent, Canadian and Indian manufacturers can develop and deliver advanced and competitive products and services for India, Canada and third country markets, he said.
The government of Canada has committed $13.8 million over five years to establish Canada-India Research Centre of Excellence. The Centre will fund greater collaboration between Indian and Canadian researchers and is expected to be operational by year-end, Bale added.
Canadian investments in science and technology currently amount to $12 billion per year and have created one of the strongest science and technology bases in the world, he said.
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