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              Canada and Japan sign energy cooperation pact

              Japan and Canada formally cemented a bilateral pact Friday to stimulate trade and investment opportunities in oil and LNG by sharing information and creating a forum to deal with energy issues. 

              Japan's Economy, Trade and Industry Minister Toshimitsu Motegi and Canada's Natural Resources Minister Joe Oliver agreed to establish a "policy dialogue" and hold an annual meeting between the two governments, with possible participation by industry, Canada's provincial and territorial governments and related organizations, they said in a statement. 

              "This strategic energy partnership between Canada and Japan will enhance Canadian jobs and economic prosperity, while addressing Japan's growing energy demands," Oliver said. 

              They said discussions will focus on the development of infrastructure, such as ports, pipelines, regasification plants and liquefaction terminals, which has been widely identified as some of the major stumbling blocks to Canada's entry into global LNG markets. 

              The two governments also said they will exchange information on energy policies, potential energy supply, market outlooks, interprovincial pipeline issues in Canada, marine safety and environmental regulation. 

              The agreement follows a September 24 meeting between Canadian Prime Minister Stephen Harper and Japanese Prime Minister Shinzo Abe, when the two leaders launched the bilateral process. 

              Oliver and British Columbia Natural Gas Development Minister Rich Coleman left Friday on separate trips to Asia to reassure prospective oil and natural gas investors that their prospects in Canada are strong and secure. 

              Both will participate in the 22nd World Energy Congress in Daegu, South Korea, then make stops in China, with Coleman adding Malaysia and the Petronas operation to his itinerary. 

              With his government scheduled to unveil an LNG-export-tax regime in November, Coleman said in a statement that Asian investors "need to understand British Columbia is open for business and is competitive with other jurisdictions." 

              Oliver said he wants to deliver a message that, despite government legislation last year banning the outright sale of oil sands producers to foreign state-owned companies, Canada "maintains an open, market-based approach to trade and investment," especially with the Asia-Pacific region. 

              Oliver told reporters he will be promoting Canada "as a destination of choice for Asian investment in the natural resource sectors." 

              But he said he expects questions about opposition that the Canadian government faces from First Nations and environmental groups to the construction of pipelines from oil and gas fields to the Pacific Coast. 

              Oliver said the clock is ticking on Canada's ability to provide the infrastructure it needs to compete in the Asian energy market, warning that the long-term prospects are shrinking.

              Published: 2013-10-15 09:49:25

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