Canadian gas sector to benefit from restrictions on foreign investments in oil sands


The Canadian government announced new investment guidelines on Dec. 7, 2012, aimed at restricting the level of control that state-owned enterprises (SOEs) can have in Canadian oil sands companies. GlobalData reports that, as a result of these investment restrictions, foreign investment by SOEs with controlling powers will likely be redirected to Canada’s gas sector, which is not affected by the restrictions. Gas-sector M&A activity is also expected to increase.

Canadian oil sands

Chinese SOEs have invested heavily in Canadian oil sands assets, accounting for approximately 80% of the investments in Canadian oil sands companies since January 2012. Mindful of LNG suppliers targeting Asia, the Canadian government has, in effect, redirected foreign investments to the country’s less-developed shale gas and LNG projects, thus ensuring that SOE investment in Canada’s gas sector will help support the country’s planned LNG plants.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...