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.

Just Posted

Rossland council agrees to finish skateboard park

Will cost taxpayers about $30,000 to complete project

Core funding to boost spending on tourism services for Rossland

Resort Municipalities grants will pay for a public washroom, better signage, and shuttle services

Passenger counts still rising at West Kootenay Regional Airport

Reliability rates also on rise in second quarter.

Third cannabis store in Greater Trail opens next week

The City of Trail has had six applications from non-medical pot retailers to date

Last stop: The inside story of Queen City Shuttle and Charters’ closure

Former employees open up about the Nelson company’s final days

Rich the Vegan scoots across Canada for the animals

Rich Adams is riding his push scooter across Canada to bring awareness to the dog meat trade in Asia

Vancouver Island teens missing after vehicle found ablaze near Dease Lake, BC

RCMP say a body discovered nearby not one of the missing teens

A year later, ceremony commemorates victims of the Danforth shooting

It’s the one-year anniversary of when a man opened fire along the bustling street before shooting and killing himself

Japanese Canadians call on B.C. to go beyond mere apology for historic racism

The federal government apologized in 1988 for its racism against ‘enemy aliens’

B.C. VIEWS: NDP pushes ahead with Crown forest redistribution

This isn’t the time for a radical Indigenous rights agenda

Two dead in two-vehicle crash between Revelstoke and Golden

RCMP are investigating the cause of the crash

Ottawa fights planned class action against RCMP for bullying, intimidation

The current case is more general, applying to employees, including men, who worked for the RCMP

Alberta judge denies B.C.’s bid to block ‘Turn Off the Taps’ bill

He said the proper venue for the disagreement is Federal Court

Most Read