Indian Oil Says Canada’s Pipeline Issues Blocking Investment
Indian Oil Corp. (IOCL), India’s largest refiner, said a lack of oil and natural gas export pipelines in Canada is a hurdle that’s preventing its investment in energy companies and assets in the country.
Indian Oil wants access to Canada’s crude and future exports of liquefied natural gas, A.M.K. Sinha, director of planning and business development on the board of the Mumbai-based state-controlled company, told reporters today at a conference in Calgary.
“We want to diversify and we are looking at Canada as a possible source,” Sinha said. The biggest constraint to investment by Indian Oil in Canada’s energy sector is “infrastructure problems, pipelines mainly,” he said. Conduits are needed from Western Canada to the Atlantic Coast, which is closer to India, he said.
Canada, with the world’s third-largest reserves of crude, is seeking new export markets for oil and gas as its main consumer, the U.S., produces more of the fossil fuels. There are more than 10 Canadian proposals to export gas in liquid form to Asia, and Indian Oil may consider investing in the sector, Sinha said.
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