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Canada-Japan sign LNG agreement Cooperation pact formalized, aimed at bilateral trade, investment; annual meetings; focus on development of infrastructure Gary Park For Petroleum News
Canada has locked down what it views as another key element in its pursuit of an LNG export market in Japan.
In a signing Oct. 11, the two countries formalized a cooperation agreement to stimulate bilateral trade and investment opportunities in LNG and oil.
Japan’s Economy, Trade and Industry Minister Toshimitsu Motegi and Canada’s Natural Resources Minister Joe Oliver agreed to establish a “policy dialogue” and hold an annual meeting of high-level government officials, with possible participation by industry, Canada’s provincial and territorial governments and related organizations.
They said discussions will focus on the development of infrastructure such as ports, pipelines, regasification plants and liquefaction terminals, all identified as major gaps in Canada’s effort to gain entry to global LNG markets.
The two governments also said they will exchange information on energy policies, potential energy supply, market outlooks, interprovincial pipeline issues in Canada, marine safety and environmental regulation.
The agreement closely follows a Sept. 24 meeting between Canadian Prime Minister Stephen Harper and Japanese Prime Minister Shinzo Abe, when the two leaders launched the bilateral process.
Separate trips to Asia Oliver and British Columbia Natural Gas Development Minister Rich Coleman have also embarked on separate trips to Asia to reassure prospective oil and natural gas investors that their prospects in Canada are strong and secure.
They are both making stops in South Korea, including participation in the 22nd World Energy Congress in Daegu, and China, with Coleman adding Malaysia and a visit to the head office of Petronas, which is pulling out the stops to get ahead of Chevron and Shell in the race to become the first large-scale exporter of LNG from Canada.
With his government scheduled to unveil an LNG export tax regime in November, Coleman said in a statement that Asian investors “need to understand British Columbia is open for business and is competitive with other jurisdictions.”
Oliver said he wants to deliver a message that, despite government legislation last year banning the outright sale of oil sands producers to foreign state-owned companies, Canada “maintains an open, market-based approach to trade and investment,” especially with the Asia-Pacific region.
Oliver told reporters he will be promoting Canada “as a destination of choice for Asian investment in the natural resource sectors.”
But he is concerned that growing opposition to LNG from First Nations and environmental groups is threatening Canada’s chances of providing the necessary infrastructure to serve Asian markets.
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