Chinese could lose interest in our oil if we delay: Enbridge CEO

The head of the company that hopes to build a pipeline to carry bitumen from Alberta’s tar sands to the BC port of Kitimat says the Chinese, who would be the main buyers of the oil, are growing frustrated by regulatory delays.

Pat Daniel, the CEO of Enbridge Inc. was with the Canadian trade delegation to China headed by Prime Minister Steven Harper. His company wants to build the $5.5 billion Northern Gateway pipeline to supply the energy-starved Asian markets, particularly China.

Daniel warned that the Chinese could lose interest. “We don’t have forever,” he said, pointing out that although a partnership with the Chinese “seems like a perfect match,” it’s important to take advantage of the opportunities when they present themselves. Chinese counterparts complain that construction would be faster in China, Daniel said.

There is no doubt that the Chinese, who are largely dependent on the Middle East for their oil, want to pursue the energy-based relationship with Canada. Several Chinese oil companies, all state-connected, have already invested about $10 billion in the oil and gas sector here. PetroChina International announced just last week that it plans to buy a 20­–per cent stake in Royal Dutch Shell PLC’s shale-gas project in B.C. There has even been talk of a Sino-Canadian free trade agreement, though some see that as being more favourable to the Chinese than to Canada.

As of now, Enbridge hopes to have all necessary approvals within two years and to begin construction in 2015. This would see oil flowing to China by 2017 at the latest. There is deep opposition to the proposed pipeline, however, mainly from First Nations and environmental groups.