Legislature convenes July 13 for LNG deal

PETRONAS and its Asian partners have endorsed deal to protect them from "discriminarory" tax hikes for 25 years

Finance Minister Mike de Jong

VICTORIA – The B.C. legislature is being recalled July 13 to examine and approve a 25-year tax and royalty agreement for B.C.’s first major liquefied natural gas investment.

Finance Minister Mike de Jong said Tuesday a project development agreement for Pacific Northwest LNG’s pipeline and export terminal near Prince Rupert has been approved by the energy companies proposing the investment of up to $36 billion. The project still needs federal environmental approval and an agreement with Coast Tsimshian and other First Nations in whose traditional territories the pipeline and shipping facilities would be built.

Members of the Lax Kw’alaams Band voted down an offer from Pacific Northwest LNG in May, citing concern about the terminal’s impact on salmon habitat in the Skeena River estuary, despite a design change to build a bridge for the pipeline above the area known as Flora Bank.

The province revealed the general outlines of the project agreement in May. It provides minimum gas royalty revenues for B.C., with increased revenue to the investors if the spread between North American and Asian prices increases during the term.

It also provides for compensation to the investors if future governments impose “discriminatory” increases to carbon tax or greenhouse gas regulations on LNG plants during the next 25 years. NDP leader John Horgan said he is concerned that the B.C. Liberal government over-promised the benefits of LNG development and may now be offering “too much lolly” to land the first big deal.

Pacific Northwest is a consortium led by Malaysia’s state-owned energy company PETRONAS, its Canadian subsidiary Progress Energy, Chinese state firm Sinopec, Indian Oil Corp., Japan Petroleum Exploration Corp. and Petroleum Brunei.

The B.C. government approved a separate 3.5 per cent LNG income tax last fall, and passed legislation to control the amount of property tax the local government can impose on the project.

Limits were also placed on conventional pollution and greenhouse gas emissions from the project, with carbon offsets required if the operation exceeds 0.16 tonnes of carbon dioxide equivalent per tonne of LNG produced.

 

Just Posted

Rockslide closes Coquihalla northbound

Highway 5 is closed in both directions according to DriveBC

UPDATE: Wind warning has ended for Metro Vancouver

More than 34,000 BC Hydro customers in the dark on Sunday morning in the Lower Mainland and Sunshine Coast

Downtown Mission: Ready to revitalize

With the bidding process underway, construction could start by mid-March

Guilty plea issued in case where man, 86, was assaulted and robbed

Hughie Stump pleads guilty to break-and-enter in relation to Abbotsford incident

WIND WARNING: Metro Vancouver expecting 100 km/h gusts Saturday night

Environment Canada issues warns of possibly dangerous conditions

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

Philadelphia Eagles headed to Super Bowl

After routing the Minnesota Vikings 38-7, they will face Tom Brady and the New England Patriots

Heavy snowfall closes Mount Washington on Vancouver Island

Road to ski resort deemed unsafe, vehicles buried under more than three feet of snow

VIDEO: Dramatic video shows return of rescued B.C. snowboarders

Two snowboarders were rescued near Rossland, B.C. on Sunday after being lost overnight.

Tom Brady leads Patriots back to Super Bowl, top Jaguars 24-20

New England to face winner of Sunday night’s game between Minnesota and Philadelphia on Feb. 4

Coquihalla drivers prepare for snow

Wintry conditions persist, with snow warnings for Coquihalla

Liberals quietly tap experts to write new paternity leave rules

Ideas include creating an entirely new leave benefit similar to one that exists in Quebec

Insurers say Canadian weather getting hotter, wetter and weirder

Average number of days with heavy rain or snow across Canada has been outside norm since spring 2013

Final phase of MDMA-assisted psychotherapy trials to kick off in B.C.

Doctors hope to get psychedelic-assisted psychotherapy legalized in Canada and the U.S. by 2021

Most Read