China Signs Oil Deal with Canada

(Beijing, China) Current plans are that, by 2009, Canada will be exporting 200,000 barrels of crude oil per day to China from the Calgary Oil Sands. An agreement of understanding has been signed between PetroChina Company Limited and Enbridge Inc., a leading energy transportation and distribution company. Enbridge will build a 1,160 kilometer pipeline from the oil sand deposits to the Canadian west coast for shipment by tanker to China.

It is anticipated that a binding contract will be in place within a year with the total project cost estimated to be about $2 billion. It will be the first time that Canadian oil is exported to Asia.