LNG Canada CEO Andy Calitz and premier John Horgan at the final investment decision announcement made in Kitimat last year. (Photo Gerry Leibel)

LNG Canada gets its tax break from the province

83 of the 87 of the MLAs are in favour of the legislation

BC Liberal MLAs are joining forces with the governing NDP to assure that legislation that will guarantee tax breaks for the liquefied natural gas industry in B.C. will become law.

On Monday, the provincial government presented the legislation in the legislature, which immediately faced opposition by B.C. Green Party’s three MLAs – with 83 of the 87 of the MLAs in favour of the legislation, its passage through the legislature is ensured.

“British Columbians are counting on us to attract LNG investment to B.C. This legislation completes the process of creating a fiscal framework that invites investment while creating economic partnerships with Indigenous peoples and protecting our clean air, land and water,” said finance minister Carole James.

The tax breaks are part of a broader range of benefits for the LNG industry announced by premier John Horgan in March last year, including an exemption from provincial sales tax (PST) and being billed for electricity by BC Hydro at the same rate as other industrial users in B.C.

Making the announcement last year, Horgan said the breaks were conditional on a final investment decision (FID) before November 2018 – LNG Canada made its FID in October, a month before the deadline.

From January next year, the new natural gas tax credit will be available to qualifying LNG corporations, calculated at 3 per cent of the cost of natural gas. The tax credit can be used to reduce B.C.’s corporate income tax rate from 12 per cent to 9 per cent.

In addition, the PST break will save LNG Canada nearly $600 million during construction.

LNG Canada CEO Andy Calitz said the measures announced by Horgan last year provided LNG Canada’s joint venture participants with confidence that B.C. supported the project and facilitated its competitiveness against other LNG projects under development or in operations.

“The province’s support for LNG development will result in significant financial benefits over the 40-year operating life of the project. This includes operating performance payments, corporate income tax, carbon tax, royalty payments on gas, motor fuel tax, income tax from labour, PST, municipal tax and payments to First Nations,” said Calitz.

He said the benefits of the project were already beginning to show in B.C. in the form of jobs, training and skills development, social investments and the purchase of local goods along with utilizing B.C. services and trades.

“The value of LNG Canada’s financial contributions goes beyond the money that will become available to government to fund education, healthcare, childcare and the like – but also to the many individuals who will work in well paid skilled trades jobs, and the many apprentices that will begin their careers in the skilled trades working on the LNG Canada project,” added Calitz.

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.

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 Houston.

– with files from Tom Fletcher.

Email the newsroom

Visit our Facebook page

Typos? Email the editor!

Just Posted

All Nations Driving Academy gets $360K boost from province

Terrace-based driving school bridges gap in services for remote northwest B.C. communities

Skeena Watershed reopened for recreational pink and coho

Four sections and tributaries remain closed

Skeena-Bulkley Valley candidates react to finding Trudeau broke ethics law

The election campaign is heating up before the writ has even dropped

Body of ATV rider recovered from bottom of Terrace trail

BC Coroners Service investigating death of man in his 70s

All Nations, Haisla teams hoop basketball tournament titles

Eighteen teams across two divisions faced off Aug. 8-10

Disney Plus to launch in Canada in November

Analysts say latest streaming service may escalate cord cutting

B.C. manhunt suspects left cellphone video before they died: family

Family member says Kam McLeod, Bryer Schmegelsky recorded final wishes

Okanagan bus driver assaulted for asking patron not to smoke

59-year-old in hospital with non-life threatening injuries

B.C. sets rules for ride hailing, same minimum fee as taxis

Larger operating areas seen as threat by cab companies

Two hiking families team up to extinguish fire in B.C. backcountry

Children and their parents worked for three hours to ensure safety of the popular hiking region

Elections Canada to assess ‘partisan’ climate change rhetoric case by case

People’s Party of Canada Leader Maxime Bernier has said climate change is not an emergency nor caused by human

Unseasonable snow forces campers out of northeastern B.C. provincial park

Storm brought as much as 35 centimetres of snow to the Fort Nelson, Muncho Lake Park-Stone Mountain Park

B.C. log export rules killing us, northwest harvester says

NorthPac Forestry says Skeena Sawmills has plenty of timber

Most Read