Two of China’s largest state-owned energy giants – CNOOC and Sinopec – have expressed interest to the federal government about investing in Canada’s potash sector and fertilizer production, government documents obtained by Postmedia News show.
The documents also reveal the Conservative government was aware for the past year, well before the recent controversy over foreign investment rules and the takeover bid for Nexen, that CNOOC was interested in co-operating “with other oil majors in investments in Canada.”
China was also looking for “early completion” of the Northern Gateway oilsands pipeline between Alberta and the B.C. coast currently under review by a federal panel.
As the Conservative government finalizes a new policy framework on foreign investment – and considers CNOOC’s $15.1-billion takeover bid for Calgary-based petroleum producer Nexen – it has been doing so knowing that major Chinese national oil and gas companies have been looking to invest in potash and fertilizer processing as well.
The Harper government has already blocked an attempted hostile takeover of Potash Corp. of Saskatchewan by Australian mining giant BHP Billiton.
It argued that crop nutrient potash was a strategic resource for Canada.
With that fresh in the minds of investors and the federal government, documents obtained by Postmedia News under access to information legislation show Chinese state-owned oil and gas companies such as China National Offshore Oil Corporation and Sinopec have told the federal government about their potential interest in investing in Canada’s potash sector and fertilizer processing.
The documents also show China already viewed Canada as a desirable place to invest and wanted an “early conclusion” of the recently signed Canada-China foreign investment promotion and protection agreement that is being hotly debated in the House of Commons.
Emails from Natural Resources Canada detailing Minister Joe Oliver’s trip late last year to China show he and senior officials met with the chairmen of CNOOC and Sinopec, who expressed their desire to possibly stake a claim in Canada’s potash sector and fertilizer production.
For the rest of this article, please go to the Calgary Herald website: http://www.calgaryherald.com/China+eyes+Canadian+potash+fertilizer+sectors/7487330/story.html