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

Rio Tinto responds to U.S. aluminum import tariffs

The tariffs were imposed by President Donald Trump Aug. 6

Coastal GasLink breaks ground on meter station in Kitimat

Meter station marks final point on pipeline that stretches from Northeast B.C.

Oily rain runoff down the drain causes concern for Prince Rupert residents

Immediate action taken to alleviate any concerns, road paving contractor said.

B.C. fish harvesters receive long-awaited details on pandemic benefits

Applications to the $470-million federal assistance programs will open Aug. 24

Repaving coming for two sections of Nisga’a Hwy and Hubert St. in Gingolx

Drivers can expect some minor delays and single lane alternating traffic

53 new COVID-19 cases, no new deaths cap off week of high infection rates in B.C.

Roughly 1,500 people are self-isolating because they either have COVID-19 or have been exposed to it

Moving on: Tanev scores 11 seconds into OT as Canucks oust Wild

Vancouver beats Minnesota 5-4 to move into first round of NHL playoffs

VIDEO: U.S. Air Force pilot does fly-by for B.C. son amid COVID border separation

Sky-high father-son visit plays out over White Rock Pier

3 Vancouver police officers test positive for COVID after responding to large party

Union president says other officers are self-isolating due to possible exposure

New mothers with COVID-19 should still breastfeed: Canada’s top doctor

Dr. Theresa Tam made the recommendation during World Breastfeeding Awareness Week

Collapse of Nunavut ice shelf ‘like losing a good friend:’ glaciologist

The ice shelf on the northwestern edge of Ellesmere Island has shrunk 43 per cent

B.C. wildfire crews have battled 111 blazes in the last seven days

Twenty-nine fires remain active, as of Friday (Aug 7)

‘We don’t make the rules’: Okanagan pub owner says staff harassed over pandemic precautions

‘If you have six people plus a baby, guess what? That’s seven’ - West Kelowna Kelly O’Bryan’s owner

T-Rex earns big bids at B.C. dino auction

Over 500 dino-themed lots sold to buyers from across North America

Most Read