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Canada to court Chinese energy investors

Alberta eager to draw China deeper into oil and gas sector.

By Daniel J. Graeber

CALGARY, Alberta, Oct. 8 (UPI) -- The provincial government in Alberta said its energy minister is headed to China to drum up investment interest in the oil and gas sector.

"China represents enormous potential as both a customer and investor for Alberta's energy industry," Alberta Energy Minister Energy Minister Margaret McCuaig-Boyd said in a statement.

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Delegates from Canadian energy companies like Suncor and Enbridge will accompany the minister on her week-long trade mission. Combined investments from Chinese oil and gas companies already represent about $27 billion for the provincial economy.

Most of the Canadian oil and gas exports head to the United States, which is reducing imports of foreign reserves because of increased domestic production from shale deposits. The Canadian government has responded by courting potential European and Asian investors to its energy sector.

Canadian Prime Minister Stephen Harper announced tax breaks to support the liquefied natural gas business during a February tour of Asia.

In Beijing last year, Harper's administration praised the expansion of Canadian company Suncor Energy in the Chinese market.

China National Offshore Oil Corp. in 2013 completed a $15.1 billion purchase of Canadian energy producer Nexen. Nexen announced plans to eliminate more than 300 employees in response to this year's slowdown in the energy sector.

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The downturn is hurting the Canadian economy in general. Statistics Canada reported real gross domestic product slipped 0.2 percent in May, the last full month for which data are available, for the fifth straight month for declines and a sign the Canadian economy is moving into formal recession.

"Market access to Asia is important to Alberta's energy industry, and the government relationship provides a solid foundation for industry to be successful," Greg Stringham, vice president of the Canadian Association of Petroleum Producers, said in a statement.

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