Aboriginal snub shakes Asian confidence in Canada's gas plans

Calgary

ASIAN investors are losing confidence in Canada's ability to send oil and natural gas across the Pacific as another major export project gets bogged down in aboriginal opposition. A West Coast aboriginal community rejected almost US$1 billion in compensation from Malaysia's Petroliam Nasional Bhd (Petronas) on Wednesday, imperilling the future of one of Canada's most advanced gas export ventures. It's the latest setback blocking Asian access to Canadian energy as pipelines and terminals needed to ship crude overseas meet resistance from the nation's indigenous communities.

The rebuff puts into sharp focus the hurdles Canada faces in its efforts to compete with the US Gulf Coast and Australia to capture rising Asian demand for fuel, as 19 proponents try to advance Canadian Pacific Coast gas exports.