China overlooks Canadian energy market

CALGARY, Alberta, July 16 (UPI) -- While Chinese firms are snatching up Canadian energy assets overseas, costs and regulatory obstacles are keeping Asia out of domestic affairs.

China Petroleum Corp., or Sinopec, in June acquired Canadian-Swiss oil and gas producer Addax Petroleum Corp. for $8.3 billion, exposing it to Nigerian and Middle East markets, including Iraq.

The Addax deal is part of a Chinese effort to increase its assets in overseas markets in Latin America, Southeast Asia, Africa and the Middle East. With a web of connectivity permeating the global economy, U.S. and Chinese markets need to recover to prop up other economies.

But Chinese companies are staying away from the domestic Canadian market, notes the Calgary Herald.

China has avoided lucrative oil sand potential in Alberta due in part to the cost of extraction and a lack of infrastructure. Meanwhile, while provincial governments are keen to attract foreign investments, obstacles at the federal level may impede economic developments throughout Canada.

While China has moved to develop a relationship with Canadian companies with overseas assets, the same is not true for domestic markets, leaving the Canadian economy vulnerable, the Herald says.