Chinese state-owned enterprise Sinopec is planning to acquire a stake in a large liquefied natural gas project in Canada. According to reports from True North News, Sinopec is in negotiations with Pembina Pipeline Corp for a potential deal that would grant them ownership in the Cedar LNG project.
Sinopec, a massive state-owned enterprise in China, is interested in acquiring shares in a Canadian liquefied natural gas project. The motivations behind this move could be diverse, including Beijing’s directive for it to optimize assets and enhance profitability. This comes in light of the economic strategies recently implemented by the Chinese authorities, which require companies to support China’s position in the global market.
A source revealed to Reuters that Sinopec’s pursuit of a stake in the Cedar LNG project aligns with its overarching goal of maximizing returns on natural gas assets, especially given the subdued local natural gas prices in Canada.
This is not Sinopec’s first foray into the energy sector in Canada. Back in 2014, the company acquired multiple projects, including natural gas fields in British Columbia, from Malaysia’s national oil company, Petronas.
However, concerns arise internationally due to the influence of the Chinese Communist Party within Sinopec, with party members even sitting on the company’s board, raising further apprehensions.
Sinopec’s actions and its relationship with the Chinese regime heighten worries about Beijing’s interest in Canadian resources, particularly in crucial mineral resources. These minerals play a significant role in various high-tech industries such as electronics and digital technologies, underscoring their strategic importance.
Against this backdrop, Canada’s security intelligence service (CSIS) issues warnings regarding foreign investments, especially Chinese investments in Canadian resources, adding an extra level of urgency.
CSIS states, “While the vast majority of foreign investments in Canada occur in an open and transparent manner, some state-owned or private enterprises have close ties to their governments or intelligence agencies and can acquire businesses in Canada or engage in other economic activities.”
The increasing involvement of Chinese companies like Sinopec in Canadian energy projects brings complex geopolitical implications and sparks debates about safeguarding Canada’s resources and strategic interests. The evolving landscape of international investments and partnerships reshapes the dynamics of global economic relations, requiring careful scrutiny and evaluation of the potential impacts on national security and economic sovereignty.