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China Strikes Deal to Explore Saskatchewan Oil & Gas In May, China National Petroleum Corp. signed a memorandum of understanding with the Saskatchewan government to explore the province’s oil, natural gas and carbon capture opportunities.
The MOU was signed by Saskatchewan Premier Brad Wall during a recent trade mission to China.
The fast-growing nation looks to meet what analysts call an "absolutely enormous" demand for energy and is expected to look first to oil investments, the energy resource with the greatest global importance.
But Saskatchewan, a leader in carbon capture, could offer additional opportunities for China as that nation seeks to curtail the greenhouse gas emissions from its numerous coal-fired power plants.
Chinese companies are capital-rich, which means they can kick-start development in partnership with Canadian firms that have technical know-how but lack cash.
In May, China Investment Corp. announced plans to buy $435 million in Calgary-based Penn West and invest $817 million in a joint venture to develop oilsands leases in the Peace River region of northern Alberta. In April, another Chinese state-owned company, Sinopec, bought a nine per cent interest in the world's largest oilsands project for US$4.65 billion, reported the Associated Press. |
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