Surrey – The Surrey Board of Trade is encouraged by today’s announcement regarding a new framework for Liquid Natural Gas producers.
“Until such a time as there is an affordable and readily accessible, non-carbon-based energy source, we will continue to need oil and gas to fuel our economy,” said Anita Huberman, CEO of Surrey Board of Trade.
The framework is designed for LNG Canada, a joint venture of Shell Canada with PetroChina, KOGAS, and Mitsubishi. The proposed project is to invest in Northeast BC gas fields and construct a pipeline to a new terminal in Kitimat for shipping to Asia. This project would be the least GHG-intensive LNG facility in the world, according to the technical briefing.
The new framework, to which LNG Canada will be subject, provides:
· Relief from provincial sales tax (PST), in line with the policy for manufacturing sectors, subject to repayment in the form of an equivalent operational payment.
· New GHG emission standards under the Clean Growth Incentive Program, announced in Budget 2018.
· General industrial electricity rates consistent with other industrial users in B.C.
· Elimination of the LNG income tax that had required LNG-specific tax rates.
In return, the province expects LNG Canada and all projects going forward to
· Guarantee a fair return for B.C.’s natural resources.
· Guarantee jobs and training opportunities for British Columbians.
· Respect and make partners of First Nations.
· Protect B.C.’s air, land and water, including living up to the Province’s climate commitments.
The LNG Canada project, should it go forward, is expected to trigger a $40 billion investment and bring in an estimated $22 billion over the next 40 years.
“In job growth alone, the proposed project could create 10,000 construction jobs by 2021,” said Huberman. “We are also pleased that due care and attention is made towards climate action. We all want a clean future – it will take time to get there and we see LNG as a solid choice for the transition.”