OTTAWA, May 13 (UPI) -- 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.