Chinese Communist Party to unveil new leadership

BEIJING (Reuters) – China‘s ruling Communist Party unveils a new leadership line-up on Thursday to steer the world’s second-largest economy for the next five years, with Vice President Xi Jinping taking over from outgoing President Hu Jintao as party chief.

The new members of the Politburo Standing Committee – the innermost circle of power in China’s authoritarian government – will emerge around 0300 GMT (10 p.m. EDT on Wednesday) after a closely controlled vote by the party’s new 205-member central committee, which was installed at the end of a five-yearly party congress on Wednesday.

Only Xi and Vice Premier Li Keqiang are certain to be on the new standing committee. Xi will take over Hu’s state position in March at the annual meeting of parliament, when Li will succeed Premier Wen Jiabao.

The committee is expected to be reduced to seven seats from nine to make consensus-building easier.

The other preferred candidates, according to sources close to the party leadership, are North Korean-trained economist Zhang Dejiang, financial guru Wang Qishan, minister of the party’s organization department Li Yuanchao, Tianjin’s party boss Zhang Gaoli, and the conservative Liu Yunshan, who has kept domestic media on a tight leash.

The list of the conservative-leaning preferred candidates was drawn up by Xi, Hu and Hu’s predecessor, Jiang Zemin, the sources said.

Wang, currently vice-premier in charge of economic affairs, is popular with foreign investors but seems set to lead the fight against corruption, having been elected to the party’s main anti-graft body on Wednesday.

Guangdong’s reform-minded party boss Wang Yang, Shanghai party boss Yu Zhengsheng and Liu Yandong, the lone woman, are dark horse candidates.

All eight of these people were on the list for the new central committee, the largest of the party’s top decision-making bodies. Exclusion from that committee means a person cannot progress to the Politburo or the standing committee.

The new leadership will emerge on Thursday morning to “meet the press” in a room in the cavernous, Soviet-style Great Hall of the People, which has been decked out in enormous red flags.

Intense secrecy has also surrounded who and how many will be promoted to the Politburo, a council of 20-odd members, and the all-powerful standing committee.

The composition of the two elite bodies could give clues to China’s political and economic direction, especially if they end up being dominated by conservatives.

Advocates of reform are pressing Xi to cut back the privileges of state-owned firms, make it easier for rural migrants to settle in cities, fix a fiscal system that encourages local governments to live off land expropriations and, above all, tether the powers of a state that they say risks suffocating growth and fanning discontent.

With growing public anger and unrest over everything from corruption to environmental degradation, there may also be cautious efforts to answer calls for more political reform, though nobody seriously expects a move towards full democracy.

The party could introduce experimental measures to broaden inner-party democracy – in other words, encouraging greater debate within the party – but stability remains a top concern and one-party rule will be safeguarded.

Another decision to watch will be chairman of the Central Military Commission. Hu may or may not choose to stay on in that post for a year or two, as did his predecessor, Jiang.

Which standing committee member gets which portfolio depends, in this hierarchical and top-down state, on the order members appear for the first time together on stage.

While the first person out will be Xi, signifying his position as party leader and president-designate, the party’s second-ranked position is head of the largely rubber stamp parliament, leaving the premier in third place.

But portfolios of the second and third-ranked leaders are likely to be reversed, giving Li higher status, sources have said.

Fourth position has historically been occupied by the head of the ceremonial advisory body to parliament, while fifth could be either vice president or propaganda tsar, sixth the executive vice premier and seventh the person in charge of fighting graft.

One position almost certain to go is that held by Zhou Yongkang, the domestic security tsar, reflecting fears the role has become too powerful.

(Additional reporting by Benjamin Kang Lim; Editing by Nick Macfie and Raju Gopalakrishnan)

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Egypt recalls envoy to Israel after Gaza strike

CAIRO (AP) — Egypt has recalled its ambassador to Israel after an Israeli airstrike killed the military commander of Gaza‘s ruling Hamas.

In a statement read on state TV late Wednesday, spokesman Yasser Ali said that President Mohammed Morsi recalled the ambassador and asked the Arab League‘s Secretary General to convene an emergency ministerial meeting in the wake of the Gaza violence.

Morsi also called for an immediate cease fire between Israel and Hamas, an offshoot of Morsi’s Muslim Brotherhood. Israel says it struck in response to rocket attacks from Gaza.

Hours earlier, Morsi’s Muslim Brotherhood group denounced the Israeli airstrike as a “crime that requires a quick Arab and international response to stem these massacres.”

Relations between Israel and Egypt have deteriorated since longtime President Hosni Mubarak was ousted last year.

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Android 4.2 For Nexus 7, Galaxy Nexus Now Available

When Google’s Nexus 10 tablet was unveiled recently, it was running Android 4.2, a new version which adds several features. That version is coming to your Nexus 7 or Galaxy Nexus device as well. Here’s what Android 4.2 brings, where to get it, and which Nexus devices are missing out.

​New features in Android 4.2

Mashable’s Christina Warren has the scoop on what Android 4.2′s bringing. Flashy additions include Daydream, a sort of screensaver for your smartphone or tablet, and Photo Sphere, a new way to take panoramic photographs that capture the whole world around you. Right now you can only see Photo Sphere images on Google+ or in Google Maps, but according to David Ruddock of the Android Police blog Google has made it so “Anyone could, in theory, build a Photo Sphere viewer.”

Less immediately noticeable improvements include a Swype-style gesture keyboard, where you don’t need to type individual letters, and a feature that lets multiple people share the same Android tablet without their apps and things getting in each others’ way. You’ll also be able to mirror your Android device’s screen on your HDTV, Apple AirPlay style, although instead of an Apple TV box you’ll need a third-party wireless display adapter.

​Who’s getting the upgrade now

Nexus 7 owners are already beginning to receive the Android 4.2 upgrade over the air. Your tablet will automatically check for it every so often, but if you want to hurry it along you can go to Settings -> About tablet -> System updates, and tell it to check again. You can also download it from Google and manually install it using Liam Spradlin’s instructions, although this is not recommended unless you’re an experienced Android hacker and are using the Wi-Fi version of the Nexus 7.

Galaxy Nexus owners who bought their phones from a wireless carrier have had to wait an unusually long time for upgrades, as long as several months after a new Android version’s announced. If you bought your Galaxy Nexus phone from a wireless carrier, an upgrade probably won’t be available anytime soon. People who purchased their Galaxy Nexus from the Google Play store are reporting that they are getting the upgrade, though, and Spradlin again has instructions for how to install manually if you are using a Galaxy Nexus bought from the Google Play store.​

Who’s being left out

While announcing that Android 4.2′s programming code was being released to the Android Open-Source Project, Google rep Jean-Baptiste Queru said “There is no support for 4.2 on Nexus S and Xoom.” The Nexus S was a Nexus smartphone released about two years ago, in late 2010, while the Motorola Xoom was the first tablet released (in early 2011) running the Honeycomb version of Android. The Xoom was not an official Nexus device, but was also made in close partnership with Google, and showcased the latest Android software.

Both devices received upgrades to Android 4.1, the first Jelly Bean version. It looks like this is where the upgrade train ends for them, though, after almost two years of support. In contrast, Apple’s iPhone 3GS, released in mid-2009, just recently received an upgrade to the latest version of iOS.

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.

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Man who accused Elmo puppeteer of teen sex recants

NEW YORK (AP) — A man who accused Elmo puppeteer Kevin Clash of having sex with him when he was a teenage boy has recanted his story.

In a quick turnabout, the man on Tuesday described his sexual relationship with Clash as adult and consensual.

Clash responded with a statement of his own, saying he is “relieved that this painful allegation has been put to rest.” He had no further comment.

The man, who has not identified himself, released his statement through the Harrisburg, Pa., law firm Andreozzi & Associates.

Sesame Workshop, which produces “Sesame Street” in New York, soon followed by saying, “We are happy that Kevin can move on from this unfortunate episode.”

The whirlwind episode began Monday morning, when Sesame Workshop startled the world by announcing that Clash had taken a leave of absence from “Sesame Street” in the wake of allegations that he had had a relationship with a 16-year-old.

Clash, a 52-year-old divorced father of a grown daughter, swiftly denied the charges of his accuser, who is in his early 20s. In that statement Clash acknowledged that he is gay but said the relationship had been between two consenting adults.

Though it remained unclear where the relationship took place, sex with a person under 17 is a felony in New York if the perpetrator is at least 21.

Sesame Workshop, which said it was first contacted by the accuser in June, had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.

Clash said on Monday he would take a break from Sesame Workshop “to deal with this false and defamatory allegation.”

Neither Clash nor Sesame Workshop indicated on Tuesday when he might return to the show, on which he has performed as Elmo since 1984.

Elmo had previously been a marginal character, but Clash, supplying the fuzzy red puppet with a high-pitched voice and a carefree, child-like personality, launched the character into major stardom. Elmo soon rivaled Big Bird as the face of “Sesame Street.”

Though usually behind the scenes, Clash meanwhile achieved his own measure of fame. In 2006, he published an autobiography, “My Life as a Furry Red Monster,” and he was the subject of the 2011 documentary “Being Elmo: A Puppeteer’s Journey.”

He has won 23 daytime Emmy awards and one prime-time Emmy.

___

Online:

http://www.sesamestreet.org

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Best Buy CEO sets goals; Wall Street begs for more details

(Reuters) – Best Buy Co Inc hopes to triple its operating margins over time, the company said on Tuesday, though investors and analysts were left wanting for details on how – and how soon – the new chief executive would turn around the world’s largest consumer electronics chain.

The aggressive new targets come as Best Buy faces cut-throat competition from online and discount retailers like Wal-Mart Stores Inc and Amazon.com Inc .

CEO Hubert Joly got a difficult reception at an investor day in New York, as people questioned whether management was focusing too much on wringing higher sales out of existing customers rather than attracting new ones. Joly was named CEO on August 20.

“I still think I am a little bit mixed on digesting the take-aways of the presentation. I think they said a lot of good things, but I think people were looking for a little bit more of a playbook and the next steps,” said John Tomlinson, an analyst with ITG Investment Research, in New York. “There’s a lot of pieces to the fixing story that seemed a little opaque and vague.”

Best Buy’s stock closed nearly 1 percent lower at $ 15.70 on Tuesday, continuing a slide that has knocked off a third of the company‘s market capitalization this year. The stock touched a 10-year low of $ 14.39 a week ago.

Dimitri van Toren, senior portfolio manager at Dutch asset manager Syntrus Achmea, which holds about 200,000 Best Buy shares, said he was worried about structural issues and a “management vacuum” at the retailer, but that he would stay in the stock despite concerns about the upcoming holiday season.

The meeting took place against the backdrop of a potential buyout offer from founder and former CEO Richard Schulze, who is expected to make an offer as soon as next month.

“I spend no time worrying about what our corporate structure will be,” Joly told reporters after the event. “I tend to focus on decisions I can influence rather than decisions I can’t influence.”

A representative for Schulze did not immediately respond to a request seeking his thoughts on Joly’s plan.

Joly said “it would have been ridiculous” to offer more concrete details after only a few weeks on the job. He said this meeting was more about setting the record straight and reassuring investors about the company’s future.

“The perception was that Best Buy was dying,” Joly said.

MARGIN TARGETS

In a statement on Tuesday, the company said its short-term goal will be “to stabilize and then begin increasing its comparable-store sales and operating margin.” Over time, it is aiming for a return on invested capital of 13 percent to 15 percent, in addition to a 5 percent to 6 percent operating margin target.

In the last fiscal year, Best Buy had an operating margin of about 2.1 percent. The last time that margin exceeded 5 percent was in the fiscal year that ended in early 2008.

Joly said a mixture of excessive costs and price competition hurt margins, and that the retailer would turn to a wider variety of higher-margin, private-label products to boost results. One example is the company’s own Insignia-brand electronics.

Best Buy has been struggling to combat a phenomenon known as “showrooming,” where people visit its stores to look at products and then buy them online for less.

Joly acknowledged the company has suffered from a “price perception issue” among customers that it needed to address, as well as weakness in its online operations.

The head of the company’s digital business said its online conversion rate – which measures how successfully Best Buy translates customer visits into actual sales – was only about half of what it should be.

“Many of these problems are a result of our own making,” Joly said during the investor presentation.

HOLIDAYS COMING

Best Buy also said on Tuesday that it would pursue a plan to “optimize its store footprint on an ongoing basis,” which suggested the company may look at ways to shrink or close stores, as some other big-box retailers have done. In late March, the company said it would close 50 large U.S. stores.

Joly warned that merely closing stores would not boost operating income, as most of the big-box stores are already profitable. Relocation to smaller space may be an option, however; he said 71 percent of the large-format stores have leases expiring within the next six years.

The details of Joly’s long-awaited plan came roughly a week before the unofficial start of the year’s biggest selling season.

The retailer, which has posted declines in same-store sales in eight of the last nine quarters, warned last month it expected earnings and same-store sales to fall again in the third quarter.

“I am already sick and tired of negative comps,” Joly said, referring to same-store sales figures.

The CEO also admitted a number of past investments have not paid off and promised the new leadership would be “prudent” about that in the future, a nod to Wall Street’s lingering concerns about spending by past management.

(Reporting by Dhanya Skariachan in New York; Writing by Ben Berkowitz; Editing by Maureen Bavdek, Phil Berlowitz, Matthew Lewis and Jan Paschal)

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General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged “inappropriate communications” with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen’s communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus’ biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen’s problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen’s communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

“Gen. Allen disputes that he has engaged in any wrongdoing in this matter,” the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

The FBI’s decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta’s decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen’s nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold “until the relevant facts are determined.” He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Panetta said President Barack Obama was consulted and agreed that Allen’s nomination should be put on hold. Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

NATO officials had no comment about the delay in Allen’s appointment.

“We have seen Secretary Panetta‘s statement,” NATO spokeswoman Carmen Romero said in Brussels. “It is a U.S. investigation.”

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama’s nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford’s hearing is also scheduled for Thursday.

___

Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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FTC chief: Kids’ Internet privacy rules done by year’s end

WASHINGTON (Reuters) – Regulators will likely finish a long-awaited update to rules protecting children’s online privacy by the end of the year, the head of the Federal Trade Commission said on Tuesday.

The original rules were developed when most computers were large beige boxes sitting under office desks instead of smartphones slung into backpacks and permeating most aspects of daily life.

FTC Chairman Jon Leibowitz said the agency was moving forward on two issues: self-regulatory “do not track” guidance, and regulations to update the Children’s Online Privacy Protection Act, or COPPA.

The law requires that website and online service operators obtain verifiable consent from parents before collecting information about children.

Leibowitz, who is thought keen to leave the agency within months, said he was more confident of finishing an update of COPPA’s rules, which were written following the 1998 legislation.

Under revised rules, the FTC would make websites, mobile apps and data brokers all responsible for getting parental consent before collecting data about children aged 12 and younger. Currently it is unclear who has the responsibility.

Data brokers buy and sell consumer data.

Speaking at the Wall Street Journal’s annual CEO Conference in Washington, Leibowitz said the process would most likely be done by the end of the year.

“We are looking at all the comments that came in and weighing how to tweak the regulation,” he said.

Leibowitz was slightly less optimistic about the fate of “do not track,” an effort to allow Internet users to tell companies they did not want to be tracked online.

Some large technology companies, like Microsoft and Google, have agreed to let consumers opt out of being tracked, but advertisers have pushed back hard.

“We’re still making forward progress,” Leibowitz said when asked if the efforts would be done by the end of the year. “We continue to be optimistic. It’s not a certainty though.”

(Reporting By Diane Bartz; Editing by Ros Krasny and Kenneth Barry)

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U2′s Bono to urge U.S. politicians not to cut aid programs

WASHINGTON (Reuters) – Irish rocker and anti-poverty campaigner Bono will appeal to Democrats and Republicans during a visit to Washington this week to spare U.S. development assistance programs from cuts as Congress tries to avert the looming “fiscal cliff” of tax hikes and spending reductions early next year.

The U2 lead singer’s visit comes as the Obama administration and congressional leaders try to forge a deal in coming weeks to avoid the economy hitting the “fiscal cliff” – tax increases and spending cuts worth $ 600 billion starting in January if Congress does not act.

Analysts say the absence of a deal could shock the United States, the world’s biggest economy, back into recession.

Kathy McKiernan, spokeswoman for the ONE Campaign, said Bono will hold talks with congressional lawmakers and senior Obama administration officials during the November 12-14 visit.

During meetings he will stress the effectiveness of U.S. foreign assistance programs and the need to preserve them to avoid putting at risk progress made in fighting HIV/AIDS, tuberculosis and malaria, she said.

Bono, a long-time advocate for the poor, will argue that U.S. government-funded schemes that support life-saving treatments for HIV/AIDS sufferers, nutrition programs for malnourished children, and emergency food aid make up just 1 percent of the U.S. government budget but are helping to save tens of millions of lives in impoverished nations.

The One Campaign would not elaborate which lawmakers and senior Obama administration officials Bono will meet.

On Monday, Bono will discuss the power of social movements with students at Georgetown University. He will also meet new World Bank President Jim Yong Kim for a web cast discussion on Wednesday on the challenges of eradicating poverty.

(Editing by W Simon)

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How To Tell If Gadgets Are Needlessly Complicated: The Mom Test

This is a rant, of the grumpy-old-man variety.

Two weeks ago I was staying at my parents’ apartment because my home in New Jersey was without power, thanks to Hurricane Sandy.

“Oh, Sonny, I’m glad you’re here,” my mother told me when I arrived. “I need you to help me set up the DVD player.”

I love my mom to bits and pieces, but sometimes it’s like a bad sitcom with her: The tech writer son tries to help his mother (who still refers to the refrigerator as the “icebox,” by the way) do something he thinks is the easiest thing in the world but to her is akin to landing the Mars Rover.

We went into her bedroom. She had a television that was connected to a cable box and a DVD player—simple. Even the universal remote that came with her cable box was already programmed to work with the TV and DVD player. Miracle of miracles.

“See, Mom, you’re going to want to change inputs when you switch from cable to DVD,” I said.

“Change inputs?” she replied. “Can’t I just have it set to channel 3?”

This is what I’m talking about: My mother has that Reagan-era notion that you can set a channel of the TV to be an auxiliary input, like I used to do when I wanted to fire up the VHS and watch The Last Starfighter. Again.

“No, Mom. It’s really simple. Let me show you.” This is where things fell apart. But not because of my mom. “OK,” I began, “you’re going to use the cable box remote. Remember to push ‘DVD’ at the top of the remote to send commands to the DVD. You’ll then have to push ‘STB’ when you want to go back to cable, but to change the TV’s input, push ‘TV.’”

The cable box remote did have a “video source” button on it. And pushing it did call up the TV’s video source menu. And pushing “video source” repeatedly did allow one to cycle through the available sources. I reached “DVD,” selected it, and then looked for the “exit” button to close out the source menu.

Except my remote didn’t have an “exit” button. Or, it did, but it wasn’t mapped to the TV’s exit function. So the TV’s source menu just sat there—on top of my mother’s DVD of The Thin Man playing underneath.

“OK, Mom, looks like this remote can’t access all the functions on your TV, so we’re going to get the TV’s original remote,” I said. Even as the words were coming out of my mouth, I knew this wasn’t going to work.

“Seriously?” my mother asked. “Lemme get this straight: If I want to watch the goddamn Thin Man on the DVD, I have to first get the TV remote, find the source menu, switch to ‘DVD,’ then go back to the cable remote, select ‘DVD,’ press ‘play,’ but don’t forget to switch the remote back to ‘STB’ when I want to control the cable box? Something like that?”

“Um. Yeah, Mom.”

“What the hell happened to channel 3?”

Here’s the thing about my technophobic mother: She’s absolutely right. The tiny hoops we are asked to jump through give lie to the idea that technology is going to make our lives easier. In some cases it does (I never get lost in my car anymore, thanks to GPS; I’m never bored anymore, thanks to my smartphone), but there are glaring omissions.

TV manufacturers, can you please get it together? Can there be some common standards so my TV knows when I’ve put a disc in the DVD player, and it can ask me if I’d like to watch it now? Can remotes and devices talk to each other automatically, with full functionality, without the need to program them? Can someone please let me access any and all on-demand, streaming, or downloaded video without having to switch from my set-top box to Netflix (NFLX) or iTunes? Can I have a TV setup that I don’t have to explain how to use to house guests and babysitters? (“… sometimes the sound bar will turn itself off because it gets confused by a signal from the remote to the TV. Just use this remote to …”)

Face it, TV people: Your products are commodities. No one cares about your hardware. One display is virtually indistinguishable from another. But if one of you actually made it easier to use your product? Let me tell you something—it wouldn’t just be 65-year-old Jewish women on the Upper West Side of Manhattan who would be interested. We’d all line up for that.

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Canada seen needing to spell out rules for natural gas projects

CALGARY, Alberta (Reuters) – The fate of a handful of liquefied natural gas projects planned for Canada’s Pacific coast may depend on the Canadian government‘s willingness to spell out rules for foreign investment in the country’s energy sector, according to a study released on Thursday.

Apache Corp, Royal Dutch Shell Plc, Petronas, BG Group Plc and others are in the planning stages for LNG projects that would take gas from the rich shale fields of northeastern British Columbia and ship it to Asian buyers.

But the federal government’s decision last month to stall the C$ 5.2 billion ($ 5.2 billion) bid by Malaysia’s state-owned Petronas C$ 5.2 billion for Canada‘s Progress Energy Resources Corp could lessen the appetite of Asian buyers for Canadian LNG, energy consultants Wood Mackenzie said.

“Some potential off-takers of Canadian LNG like the idea … because it’s perceived as having low political risk, and another reason is because they see the potential for investment opportunities,” said Noel Tomnay, head of global gas at the consultancy.

“If there are going to be restrictions on how they access those opportunities, if acquisitions are closed to them, then clearly that would restrict the attractiveness of those opportunities. If would-be Asian investors thought that corporate acquisitions were an avenue that was not open to them then Canadian LNG would become less attractive.”

The Canadian government is looking to come up with rules governing corporate acquisitions by state-owned companies and has pushed off a decision on the Petronas bid as it considers whether to approve the $ 15.1 billion offer for Nexen Inc from China’s CNOOC Ltd.

Exporting LNG to Asia is seen as a way to boost returns for natural-gas producers tapping the Montney, Horn River and Liard Basin shale regions of northeastern British Columbia.

Though Wood Mackenzie estimates the fields contain as much as 280 trillion cubic feet of gas, they are far from Canada’s traditional U.S. export market, while growing supplies from American shale regions have cut into Canadian shipments.

Because the region lacks infrastructure, developing the resource will be expensive, requiring new pipelines and multibillion-dollar liquefaction.

Still Wood Mackenzie estimates that the cost of delivery into Asian markets for Canadian LNG would be in the range of $ 10 million to $ 12 per million British thermal units, similar to competing projects in the United States and East Africa.

($ 1 = $ 1.00 Canadian)

(Reporting by Scott Haggett; Editing by Leslie Adler)

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