Christy Clark, the Premier of British Columbia (B.C.) has announced that legislation tabled in the B.C. legislature puts in motion ratification of the government’s first LNG project. This marks an integral phase in the development of the province’s LNG industry.
Clark stated: "Three principles underpin these agreements: to give business certainty and keep B.C. competitive; to ensure British Columbians see the benefits of the resource they own; and to ensure we build the cleanest LNG facilities in the world."
B.C. LNG project agreement
LNG project agreements are a tool used to grant proponents that are considering large-scale investments in B.C. assurance that certain specific taxes and environmental regulations will remain stable over a period of time. Finance Minister, Michael de Jong, tabled the Liquefied Natural Gas Project Agreements Act, which grants authority for government to enter into LNG project agreements.
The bill outlines four areas in which the province provides proponents with protection under a project agreement. Changes to these areas may trigger indemnification. The four areas are: LNG income tax, natural gas tax credit, carbon tax and the key features of greenhouse gas emissions regulatory scheme at an LNG facility.
Putting legislation in place so natural gas can reach new markets
“Since the outset of this project, our government has pledged to proceed openly and transparently,” said de Jong. “By seeking ratification of the legislation enabling project agreements via the Legislative Assembly, we are meeting that commitment and ensuring that we have the support of British Columbians as we pursue LNG development in B.C.”
“Today is about putting legislation in place so our vast supply of natural gas can reach new markets,” said Minister of Natural Gas Development, Rich Coleman. “Project development agreements provide industry with the certainty they need to invest in the province's potential to create a new export industry and thousands of jobs for British Columbians.”
Pacific NorthWest LNG agreement
The first project agreement with Pacific NorthWest LNG was released on 6 July 2015 and represents an investment of US$36 billion. At peak construction, the project is expected to create 4500 jobs, with 300 operational long-term jobs and 300 local spin-off jobs.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/14072015/bc-seeks-lng-agreement-approval-1026/