In April 2005, the chief executive of Enbridge Inc. flew to Beijing to sign a $2-billion deal with one of China’s fossil fuel giants, PetroChina International Company Limited. Together, the companies agreed, they would develop what was then called the “Gateway Pipeline” to send oil from Alberta to Asia. Sinopec straddles both sides, as Asia’s biggest refiner, a major importer of oil to China and an investor in Canada. The Chinese giant, with 1.6-million barrels per day in global output, holds a 5-per-cent ownership in Northern Gateway, and interests in several Canadian oil projects, including a minority share in Syncrude and 50 per cent of the unbuilt Northern Lights project, a joint venture with Total SA that it first entered in 2005. But investment in Northern Lights has been held back in part by the deflated price of oil sands crude, which has been lowered by the inability of companies to build new pipelines to bring product to market.
Posted on: Wed, 18 Jun 2014 14:42:05 +0000
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