Look for private enterprise to follow China's national oil companies
August 01, 2012
It is a known story by now that China has chosen Canada as one of its most favored destinations for investment. In less than three years, Chinese national oil companies (NOCs) such as PetroChina, Sinopec and CNOOC, as well as the China Investment Corporation, the country’s $300 billion sovereign wealth fund, have put some $16 billion into Canada’s energy sector alone, most of it in Alberta.
Much of this investment has been facilitated by a positive Canada-China relationship. Prime Minister Stephen Harper made his second visit to China early this year, followed by multiple ministers and provincial premiers and other municipal and business delegations. A Joint Working Group between Natural Resources Canada and China’s National Energy Administration recently met in Ottawa and in Calgary, where Canadian officials and senior energy executives discussed policy co-ordination and co-operation with their Chinese counterparts.
Chinese NOCs are establishing themselves and will continue to invest in Canada, but they are only one side of this story. There are indications that investment interests from China’s private sector have taken a shine to Canada, too. Compared to the NOCs, Chinese private investment in Canada is relatively small, but several factors suggest that could change.READ FULL ORIGINAL POST AND MORE HERE