Sinopec confirms participation in Enbridge Northern Gateway pipeline

Sinopec Corp., China’s second-largest energy company, has confirmed that the company is participating with Enbridge Inc. on the Canadian company’s proposed $5.5-billion Northern Gateway pipeline. The company would not say whether their participation involved direct investment in the project. The proposed pipeline will shuttle oil-sands crude 1,172 kilometers to a port in Kitimat, B.C., so it can be shipped to markets in Asia.

Sinotec's activity in Canada already includes a joint venture with France’s Total SA on the Northern Lights oil-sands project, which is undergoing feasibility studies,  and a US$4.65-billion investment in Syncrude Canada Ltd. Both the Northern Lights and Syncrude projects involve equity investments.

A spokesman for Sinopec’s Northern Gateway echoed the view of that of many executives, investors and politicians across Canada regarding the Northern Gateway pipeline.

“I believe it is important to build a pipeline project to the western coast in Canada because this will help Canada diversity its export market,” he said.

Existing pipeline infrastructure that ships oil sands crude to the United States will not be able to keep up with further expansion in the oil sands. Sinopec and Total will reconsider the pace of development at their Northern Lights oil sands project if Northern Gateway is not built, Mr. Hou said. This reflects what other executives with operations in northern Alberta have said.

Sinopec is the world’s second-largest refining company, behind Exxon Mobil Corp. It is Asia’s largest refining company.