AMK Sinha, the director of planning and business development at Indian Oil Corp (IOC) informed reporters that lack of pipeline infrastructure in Canada is hindering the firm's investment plan in the country.
Although the firm intends to invest in Canada’s energy sector to gain access to crude and natural gas exports, lack of infrastructure makes it very difficult, Sinha told reporters.
He further clarified that the firm wants to diversify and it was looking at Canada as a possible source. But infrastructure problems, mainly a lack of pipelines, are hindering the potential investment from India. Pipes are needed to transport the hydrocarbons from Western Canada to the Atlantic Coast, which is closer to India, he said.
It may be noted that a few years ago, Canada planned to expand the oil sands projects in Alberta and export crude oil to the US, which was having large demand for the commodity.
However, following the boom in the shale gas industry in the US, the country did not feel the need to import crude oil from Canada.
Canada had to look elsewhere for a market, and Asia seemed like the obvious choice. China and India are two of the largest and fastest growing economies in the world, and their thirst for oil is growing exponentially.