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CGA supports Canadian tax measure for LNG facilities

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LNG Industry,

The Canadian Gas Association (CGA) has welcomed the government of Canada’s intention to establish new Capital Cost Allowance (CCA) rates to help support investment in LNG facilities in Canada.

The federal government recently announced plans to establish a capital cost allowance rate of 30% for equipment used in natural gas liquefaction and 10% for buildings at a facility that liquefies natural gas.

Timothy M. Egan, President and CEO of the Canadian Gas Association, said: "LNG, a clean and affordable energy solution, has just become a much more realistic option for a number of domestic markets including northern and remote communities and the transportation sector […] The natural gas distribution industry is highly supportive of this federal government tax measure that will help support new LNG facility investments and expansions in Canada, supporting jobs and growth.

"Today, well over 20 million Canadians benefit from the safe, clean, reliable, and affordable energy service that natural gas utilities provide using abundant natural gas. This tax measure will go a long way towards ensuring that even more Canadians have that energy choice. The government of Canada announcement will support industrial development, driving environmental performance, and reducing energy costs for Canadian homes, businesses, and institutions."

Adapted from press release by

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