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B.C. LNG terminal faces delays

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LNG Industry,

Reuters reports that a small scale LNG project in British Columbia (B.C.), Canada, could be faced with delays, due to the project consortium appealing an equipment import tax. The project is worth CAN$300 million, and is facing a 25% tariff. The consortium had challenged the tax in early 2015, but to avail. They have appealed again, and expect a new answer in November 2015.

The Douglas Channel project is a floating LNG terminal, which will be built in China and shipped to B.C. The project was expected to take a final investment decision (FID) before the end of 2015, but, as John Lowe, the Executive Vice President of the project partner, Atlagas, told reporters: “This is quite a significant price impact […] We need to resolve this to reach FID.”

Lowe went on to say that the tariff existed to protect Canadian shipbuilders, but that there are no Canadian shipbuilders that can build such an LNG terminal. Thus, Lowe concluded: “So it's a barrier for no useful purpose.”

Edited from press release by David Rowlands

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