The Canadian arm of the Chinese state-owned energy giant has a half-interest in the Grand Rapids Pipeline, with Calgary-based South Bow Corp. holding the rest. Grand Rapids runs 460 kilometres between the oilsands region in northeastern Alberta and the Edmonton area.
PetroChina was seeking to acquire South Bow’s interest under an option contained in their agreement that includes a 30-day time limit, said an Alberta Court of King’s Bench written decision posted online last week.
“The proverbial fly-in-the-ointment is the requirement of two governmental authorizations,” wrote Justice Douglas Mah, who rendered his oral decision in December.
“First, because of the size and nature of the transaction, dispensation is required under the Competition Act … Second, because PetroChina is a Chinese state-owned enterprise, its acquisition of South Bow’s interest in the pipeline must undergo a net benefit review under the Investment Canada Act … Both of these authorizations take time to get.”
I am glad they were met with Government barriers. I don’t want the pipeline to be owned by a Chinese company at all but I know nothing of the agreement made when building the pipeline.
Though given how the Rogers / Shaw merger went forward despite objections by relevant bodies I somewhat doubt the acquisition will be stopped.