BackIOC to invest $4 billion in Canada
The firm will invest $4 billion in the British Columbia province to source LNG from the region
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New Delhi: Indian Oil Corp. Ltd (IOC) will invest $4 billion in the British Columbia province, Canada, to source liquefied natural gas (LNG) from the region.
Premier of British Columbia, Canada Christy Clark said: “Indian Oil is poised to make its biggest investment in Canada to secure natural gas for India from BC."
She said the state-run firm will invest $4 billion for securing LNG supplies from the Canadian province.
IOC, in May, signed a deal to buy 10% stake in shale-gas assets and a linked liquefied natural gas project in British Columbia.
The Canadian asset will produce as much as 19.68 million tonnes of LNG a year for 25 years starting in 2018.
That apart, Clark said, GMR Group of India and IC-Impacts of her province will now work together on safe and sustainable infrastructure like innovative pavement technology, construction design and water and waste water infrastructure.
Wooing domestic investors, she said: “We, in British Columbia, would like to partner with this great country to realize its potential by providing LNG to power its future. We recognise that there will be a mix of energy sources - coal, oil, solar, wind.
“India needs a million skilled workers a year, every year, for the next 15 years. We can help. If we can help train 3,000 and 300 of them help us build an LNG industry—it’s good for you and good for us."
Reliance Industries Ltd has also signed on with IC-Impacts to share research, training and develop new technologies in such areas as specialised building materials for infrastructure like bridges, roads and buildings.
The state government of Punjab and BC have committed to work together on skills training, education and agriculture.
Projecting BC as an attractive destination for investment in the LNG space, Clarke said: “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."
The Canadian province is also expecting big ticket investments in its energy space from other geographies as well. It is likely to finalize $36 billion from Petroliam Nasional Bhd of Malaysia by this new year.
Earlier this week, Clark announced a funding for 20 scholarships, worth a total of $50,000, to support and encourage two-way exchange of students between the University of the Fraser Valley and Sanatan Dharma College in Chandigarh.
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