China Investments in Canada
China backed Kitimat LNG Inc. has already built a LNG port in Emsley Cove, 15 km south of Kitimat which will ship BC LNG to China through Galveston LNG, a company also backed by European and U.S. investors. China National Petroleum Corporation (CNPC), China’s largest oil and gas later made a 50-50 partnership agreement with Galveston LNG Inc. and expects the share to reach 22% of the country’s total gas use.
PetroChina owns 20% of Shell’s Groundbirch assets plus bought Arrow Energy and with Sinopec a $2.1bn purchase of Daylight Energy last October. Last year Cnooc, China’s largest offshore oil producer, acquired Opti Canada, a bankrupt oil sands producer, for $2.1bn including it’s debt.
The Chinese owned Sunshine Energy is now offering stock on the Hong Kong exchange rather than in Toronto, this will keep investments in Asia where their will be less concern by investors (for peoples rights and environmental matters). Bank of China International, Deutsche Bank and Morgan Stanley have been seeking potential investors and are now taking formal orders for the shares. Sunshine’s choice of Hong Kong was influenced by some of its key shareholders, which are controlled by the Chinese government. Last March Sunshine raised C$230m (US$227m) from investors including China Life Insurance and Bank of China Group Investment.
China has also invested heavily in Embridge and is using this flagship Canadian company as corporate cover to secure access to Alberta crude. Can we trust our resources to this much Chinese influence. Can we trust Enbridge who haven’t been honest in disclosing their record on pipeline leaks, 170 spills and leaks in the United States since 2002 by Enbridge-owned companies. Yes, Enbridge has a better than industry average but the Transportation Safety Board points out that Enbridge and TransCanada were involved in three out of the four reported cases in Canada 2009/2010.
“Since the end of 2009, China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (Sinopec) and China National Offshore Oil Corporation (CNOOC) all have made substantial investments in the Canadian energy sector with a particular focus on the Alberta oil sands development. The China Investment Corporation – a $300 billion sovereign wealth fund – opened its first overseas office in Canada early this year and chose Canada for its only energy sector equity investment.”
“So far the largest single Chinese investment in the Canadian energy sector is the $4.65 billion takeover of ConocoPhillips’ shares by Sinopec in Syncrude Canada Ltd. The Syncrude Group is Canada’s largest oil sands production consortium with most of its production exporting to the US market.”
“The Sinopec-Syncrude deal was followed closely by the successful purchase of 60% of Athabasca Oil Sands Corporation’s MacKay and Dover oil sands projects by PetroChina (a CNPC subsidiary) worth $1.9 billion. China also has invested in Canada’s mining sector since 2009 – notably the $1.7 billion equity investment by the China Investment Corporation in Teck Resources, a Vancouver-based company with both energy and mining assets in North America. In its latest move, CNOOC, the third-largest Chinese national oil company (NOC), acquired the struggling oil sands producer Opti Canada Inc, buying a 35% stake in the joint Nexen-Opti oil sands project in Long Lake, Alberta.”
“The three top Chinese national oil companies made investments in Canada, (2005) including a $2 billion memorandum of understanding between PetroChina and Enbridge to support building the Gateway pipeline system.”