Potential multi-billion dollar LNG developments prompt B.C. legislation
Bill 30 would provide project proponents with protection under the LNG Income Tax, the Natural Gas Tax Credit, and the Carbon Tax and greenhouse gas emissions regulations.
The B.C. government has tabled legislation to protect large scale liquefied natural gas (LNG) developers from changes in the taxation and environmental rules that might impact them in the future.
The move is to boost prospects that the massive multi-billion dollar construction of terminals and other infrastructure for the LNG industry will move ahead. The government of Premier Christy Clark says the province has a natural gas supply estimated at 2,933 trillion cubic feet, enough to support domestic and export markets for 150 years.
Tabled on July 13 as Bill 30, the Liquefied Natural Gas Project Agreements Act enables the government to enter into agreements with proponents. It is “a tool used to grant proponents considering large-scale capital investments in B.C. with assurance that certain specific taxes and environmental regulations will remain stable over a period of time.”
The bill would provide project proponents with protection under the LNG Income Tax, the Natural Gas Tax Credit, and the Carbon Tax and greenhouse gas emissions regulations.
A week before tabling Bill 30 the province signed its first LNG Project Development Agreement with Pacific NorthWest LNG, a consortium that is planning to build a large terminal on Lelu Island near Prince Rupert. The project is worth an estimated Cdn. $45.6 billion. It would provide 4,500 jobs at peak construction.
The first phase at Lelu Island would consist of two liquefaction trains, two LNG storage tanks, marine infrastructure with two berths for LNG carriers, a material offloading facility, and administration and auxiliary buildings.
The Lelu Island LNG project still has to receive federal environmental approval. Until that is given and until the new legislation is passed, Pacific Northwest LNG will not make a final decision to proceed. Pacific Northwest LNG includes the Malaysian energy giant Petronas,
The Lelu Island facility would liquify and export natural gas produced by Progress Energy Canada in notheastern B.C. This gas would be transported to Lelu Island by TransCanada Pipelines.
To read the July 14 press release from the B.C. Government, click here.
To read an article by Jean Sorensen from the March-April 2015 issue about the work being done by consulting engineers for the LNG industry in northern B.C., click here.