India invites Canadian firms to invest in energy infrastructure

New Delhi: India has invited Canadian firms to invest in energy infrastructure and offered to jointly underwrite large projects like LNG terminals as well as refinery and petrochemical plants. Oil Minister Dharmendra Pradhan visited Calgary from July 4-6 to participate in the 2nd India-Canada Energy Dialogue. He also addressed business leaders at Calgary and Vancouver, an official statement said here.

"During various meetings, Pradhan offered to jointly underwrite large-scale energy projects such as LNG and refinery and petrochemical plants and highlighted availability of world standard cost effective and quality EPC companies in India with highly talented manpower who can contribute to the Canadian hydrocarbon sector," it said. He invited Canadian financial institutions to invest in energy infrastructure in India. "There is unlimited potential for natural partnership between the two countries," he said.

Pradhan's visit comes as a follow up of Prime Minister Narendra Modi's visit to Canada in April that "created an excellent momentum to expand energy ties including investment in energy and related technologies and services", the statement said.

Discussions were also held to further collaborate in areas such as energy efficiency and innovation, oil and gas development, exchange of regulatory best practices and renewable energy during Pradhan's visit. "The two sides acknowledged that Canada can become an energy exporter to India and India can diversify its sources of supply from Canada," it said.

The minister highlighted the natural synergy between the India and Canada in the energy sector and investments already made by Indian companies. Indian Oil Corp (IOC) is participating in an integrated LNG project in British Columbia, Canada with investment of USD 1 billion, which can go up to USD 4 billion. IOC and ONGC Videsh have already opened offices in Calgary.

Pradhan referred to the recent IMF studies which showed that India was expected to be the fastest growing economy in 2014-2025. In addition, according to the International Energy Agency's World Energy Outlook 2014, India's oil demand growth between 2013 and 2040 would be the highest in the world with a CAGR of 3.5 per cent.

Most of this huge demand was being met by imports. The minister also witnessed, along with the Finance Minister of British Columbia, the signing of an Agreement of Adherence between IOC and Government of British Columbia at Vancouver which will facilitate operation of LNG project in Canada.