LNG storage tanks at Natori, Japan, 2016. Asian countries are the target customers for LNG from B.C. (Tom Fletcher/Black Press)

B.C. NDP moves to provide tax credits, tax cut for LNG Canada

Provincial sales tax break of $596 million repayable after construction

The B.C. government has presented its promised tax breaks for LNG Canada’s liquefied natural gas development at Kitimat, over the objections of three B.C. Green Party MLAs.

The legislation was supported by B.C. Liberal MLAs when it was introduced Monday by Finance Minister Carole James, and opposed by the three B.C. Green MLAs. That means its passage is assured, with 83 of 87 MLAs in favour of it.

The changes were agreed to by the government and the Shell-led consortium investing an estimated $40 billion in the LNG terminal and Pacific GasLink pipeline from Dawson Creek to Kitimat.

They include repealing an LNG income tax imposed during former premier Christy Clark’s push for LNG development at a nearby site at Prince Rupert. The amendments also provide a provincial sales tax exemption that the government estimates will save LNG Canada $596 million during construction. That amounts to an interest-free loan, as the agreement requires the company to begin paying the accumulated PST bill once the LNG starts shipping to customers in Asia.

The NDP government is also giving LNG Canada the province’s standard industrial rate for electricity, replacing a higher rate that was part of the previous government’s deal. James said the LNG Canada project is currently rated as the cleanest LNG project in the world, despite the consortium’s decision to power its refrigeration and compression equipment by burning natural gas.

Weaver said an LNG plant in Louisiana is already moving to all-electric LNG production for export, meaning LNG Canada will not be the cleanest by the time it begins shipping in 2024.

READ MORE: LNG Canada – how the deal got done

READ MORE: LNG Canada sponsors driver training

James said as of December, there were 600 people working on the LNG Canada project, and more work on the pipeline route. Discussions continue with protesters who have built a camp on the route near Smithers.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

LNG

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Face masks will be mandatory for customers at all Walmart locations

Requirement goes into effect on Wednesday, Aug. 12 across Canada

Building at Mission summer camp destroyed in fire, RCMP say arson suspected

Khalsa Centre summer camp was closed due to COVID-19, 17 staff were present on site

New treatment centre for addicted youth opening in Chilliwack

Facility ready to support up to 20 youth with substance-use challenges

VIDEO: Late-night Highway 11 crash in Abbotsford sends 2 to hospital

SUV crashes through concrete dividers on Aug. 5, 1 person airlifted out

UPDATE w/ VIDEO: Stabbing at Killer’s Cove Marina in Harrison Hot Springs

Three suspects apprehended by Agassiz RCMP at the scene

B.C. would not send students back to school if there was ‘overwhelming risk’: Horgan

Plan has left many parents across the province worried about their children’s safety

2016 kidnapping, extortion by Hells Angels member related to Hope cannabis grow ops

Various Hope area grow ops connected to distribution network in Edmonton, court documents detail

Masks to be mandatory on BC Transit, TransLink starting Aug. 24

Both BC Transit and TransLink made the announcement in separate press releases on Thursday

Penticton homes evacuated due to wildfire northwest of city

Emergency vehicles are at the scene near Sage Mesa, evacuation centre set up in Penticton

Drinking in two city parks to be allowed by Chilliwack council

Crossing and Vedder Park both designated for pilot project that encourages responsible drinking

British Columbians worried as end of COVID-19 rental supplement looms

Single mom struggles as supplement was her saving grace

Six-foot blood python missing in downtown Chilliwack

Owner is worried and reports the snake ‘more loving and gentle than a lil’ kitten’

Arson suspected in several wildfires lit near Kootenay town

RCMP making progress in arson investigation of Marsh Creek fires

Three screening officers at Vancouver airport test positive for COVID-19

The public is not believed to be at risk of exposure

Most Read