LNG Canada CEO Andy Calitz announces natural gas export project partnered with Shell, Korea Gas, PetroChina and Mitsubishi Corp. of Japan in 2014. (Black Press files)

B.C. NDP offers tax breaks to jumpstart LNG Canada in Kitimat

‘We’re not giving away more money,’ Premier John Horgan says

The B.C. NDP government has offered additional incentives to LNG Canada for its proposed $40 billion natural gas export project from northeastern B.C. gas fields to Kitimat.

Premier John Horgan announced Thursday his government has offered the Shell-led project an exemption on provincial sales tax for its construction, and is getting rid of the previous government’s income tax on liquefied natural gas (LNG) sales.

The incentives would take effect if LNG Canada decides to go ahead by November 2018.

Horgan told reporters at the legislature the opportunity is “spectacular,” but there are significant risks. He also responded to questions about his previous opposition to former premier Christy Clark’s plan, which Horgan said was too generous to natural gas producers, even including the LNG income tax.

Government officials estimate that the new NDP incentives would result in the province forgoing $6 billion in revenues over 40 years that would have been collected if LNG Canada had proceeded under the previous government’s tax and gas royalty system. The new tax regime is estimaed to generate $22 billion in tax and other revenue for the province if LNG Canada proceeds, down from a previous estimate of $28 billion.

Horgan said the new government’s review of the previous B.C. Liberal tax system, including the world’s only LNG income tax, would not have resulted any large LNG plants being approved by investors under current market conditions.

Horgan said he has discussed his latest proposal extensively with B.C. Green Party leader Andrew Weaver, who said in January he would withdraw his support for the NDP minority government if it promoted LNG exports.

Weaver said he does not support carbon tax breaks for LNG producers and is concerned that LNG development places an additional burden on other industries to meet B.C.’s greenhouse gas reduction targets. But he intends to continue supporting the NDP government while it works towards meeting those targets, despite an estimated 10 per cent increase that would occur with LNG Canada operating.

“We’re not giving away more money” with the extra tax incentives, Horgan said Thursday. B.C. Hydro will sell power to any new LNG project at standard industrial rates, and future carbon tax increases could be rebated for LNG Canada only if it meets standards for the world’s cleanest LNG production that will increase over time.

The B.C. Liberals were quick to circulate Horgan’s quotes from 2013, when the Clark government was working with Petronas-led Pacific Northwest LNG, LNG Canada and others. Horgan opposed selling B.C. Hydro power at the standard industrial rate to LNG producers, at one point calling it a “subsidy” to them from residential ratepayers across the province.

LNG Canada is a partnership of Shell, which owns 50 per cent of the project and has extensive gas well developments in northeastern B.C., along with PetroChina, KOGAS of South Korea and Mitsubishi of Japan.

Just Posted

All that jazz

Smithers Secondary show they have all that jazz with their performance of Chicago.

Minerals North to draw hundreds

This is second time Houston has hosted northern mining industry.

NWCC gets green light for name change

The name Coast Mountain College in effect as of June 18

Tree branch damages VIA Rail train between Prince Rupert and Prince George

Passenger train has delayed the scheduled route on April 22

Students want Smithers to take on plastic bag problem

After a survey that had 430 responses, Hannah Pow and Jessica Walton laid out a plan.

Toronto van attack suspect faces 10 counts of first-degree murder

The suspect in the Toronto van attack that killed 10 people and injured 15 others on Monday is a 25-year-old man named Alek Minassian

Doctor sees healing power in psychedelic plant as Peru investigates death of B.C. man

Peru’s attorney general has ordered the arrest of two suspects in the killing of 41-year-old Sebastian Woodroffe

Toronto police officer ‘gave himself the space and time’ in van attack

Footage shows officer standing up, turning off his siren and talking clearly to the suspect

$1.18 to $1.58 a litre: Are you paying the most for gas in B.C.?

Gas prices across B.C. vary, with lowest in Vernon and highest in – you guessed it – Metro Vancouver

Inquest set 10 years after B.C. woman shot, left to die

Lisa Dudley, and her partner, Guthrie McKay were shot in their Mission home in September 2008

B.C. hockey team to retire Humboldt Bronco victim’s number

BCHL’s Surrey Eagles to retire Jaxon Joseph’s No. 10 in light of bus tragedy

B.C. Hells Angels invited to rally by anti-SOGI organizer

The Culture Guard group has helped Hells Angels in the past, said its executive director.

B.C. bill aims to keep Indigenous kids in communities, out of care

Changes to Child, Family and Community Service Act could connect MCFD, Indigenous communities

Condo contract rules target B.C. property flippers

Regulations to prevent property transfer tax evasion

Most Read