State-operated Indian Oil Corporation said it is planning on making $4 billion worth of liquefied natural gas investments in British Columbia, Canada, to take advantage of the high rate of LNG production in the area, Press Trust of India reported. In commenting on the deal, Premier of British Columbia Christy Clark said it is the company's largest investment in Canada.
Recently, IOC bought 10 percent stake in LNG assets for a project in British Columbia, which is expected to have an output of 19.68 million tons of LNG per year, Economic Times reported. The move by the company to purchase interest in the project is part of its goal to diversify its energy portfolio.
Clark said British Columbia is appealing for LNG investors because of its location and resources, which increase the cost-effectiveness of operations.
"There are several advantages - short transportation time to Asia to save cost, lower operating costs, vast gas reserves, stable and reliable jurisdiction and a strong regulatory regime," Clark said, describing the reasons for LNG investments in the region, according to Economic Times.