22 | Oil vs. LNG
SOEs, acquiring natural gas plays will
likely invest under the thresholds needed
to stay off ICA radar.
However, the liquefaction plants, which
require huge capital not available in Canada alone, might one day find themselves
in the same policy boat as oil sands investments, Zalmanowitz adds. "I think you are
going to have a bit of an easier go on the
LNG side until you get a situation like a
CNOOC, where it is so big that it attracts
attention and political debate." Unlike the
Competition Act, which has a very analytical framework, explains Zalmanowitz, the
ICA leaves room, especially through the
"vague" net benefits test, for political motivations to sway the approval of foreign
investments in favour of LNG projects.
Leaning in political favour for LNG are a number
of other factors, with environmental concerns high on
the list. Enbridge's Northern
Gateway Pipeline, which
would transport crude from
near Edmonton to Kitimat,
BC, and Kinder Morgan's
proposed tripling of capacity
to its pipeline carrying crude
from Alberta to Burnaby,
BC, have met fierce resistance from environmentalists and Aboriginal communities. "There is a huge perceptual difference between
natural gas pipelines and
oil pipelines," says Hudec.
"Who hears about resistance to the LNG projects?
But Gateway and Kinder
Morgan are rife in the news.
Enbridge has been totally
botched and may go nowhere."
Says Kangles: "I can tell you from my
own experience natural gas developments
now appear to be easier and less controversial than oil developments. If you have
a gas pipeline leak it goes up in the air. It
may ignite and create a significant incident, but generally gas goes up in the air.
If you have an oil pipeline leak, oil goes all
Lexpert®Ranked Lawyers
Kraag, Scott A.
Torys LLP
(416) 865-7980
skraag@torys.com
Mr. Kraag emphasizes
infrastructure
development, the
renewable energy
sector and mining in
his project finance
practice. He represents
lenders, sponsors,
equity investors,
underwriters,
contractors, service
providers and public
authorities.
Kufeldt, Kent D.
Borden Ladner
Gervais LLP
(604) 640-4195
kkufeldt@blg.com
Mr. Kufeldt's corporate
and securities practice
covers equity and
debt financings,
reorganizations and
M&A transactions in
oil and gas, mining,
real estate and other
sectors. Clients
include companies,
partnerships
and underwriting
syndicates.
Labeau, PierreChristian
Norton Rose Fulbright
Canada LLP
(418) 640-5008
pierre-christian.
labeau@
nortonrosefulbright.com
Mr. Labeau practises
Native, constitutional
and administrative
law. He advises public
agencies, corporations
and banks and other
clients on issues
related to energy,
mining and forestry
development, including
IBAs and the duty to
consult.
Laffin, Michael J.
Blake, Cassels &
Graydon LLP
(403) 260-9692
michael.laffin@
blakes.com
Mr. Laffin provides
strategic corporate
and energy advice
to Canadian and
international oil and
gas companies,
and has extensive
experience negotiating,
structuring and
advising on all aspects
of conventional and
unconventional oil and
gas matters.
Langlois, Martin R.
Stikeman Elliott LLP
(416) 869-5672
mlanglois@stikeman.
com
Mr. Langlois is co-head
of the M&A and Private
Equity Practice Group
in Stikeman Elliott's
Toronto office. His
practice focuses on
M&A, securities and
governance matters in
the renewable energy,
financial services and
technology sectors.
Lefebvre, David R.J.
Gowling Lafleur
Henderson LLP
(403) 298-1978
david.lefebvre@
gowlings.com
Mr. Lefebvre's practice
focuses on national
and international
M&A, private
equity transactions,
capital markets,
project financings
and corporate
governance matters.
He is a member of
the Alberta Securities
Commission's
Securities Advisory
Committee.
