Legislature convenes July 13 for LNG deal

PETRONAS and its Asian partners have endorsed deal to protect them from "discriminarory" tax hikes for 25 years

VICTORIA – The B.C. legislature is being recalled July 13 to examine and approve a 25-year tax and royalty agreement for B.C.’s first major liquefied natural gas investment.

Finance Minister Mike de Jong said Tuesday a project development agreement for Pacific Northwest LNG’s pipeline and export terminal near Prince Rupert has been approved by the energy companies proposing the investment of up to $36 billion. The project still needs federal environmental approval and an agreement with Coast Tsimshian and other First Nations in whose traditional territories the pipeline and shipping facilities would be built.

Members of the Lax Kw’alaams Band voted down an offer from Pacific Northwest LNG in May, citing concern about the terminal’s impact on salmon habitat in the Skeena River estuary, despite a design change to build a bridge for the pipeline above the area known as Flora Bank.

The province revealed the general outlines of the project agreement in May. It provides minimum gas royalty revenues for B.C., with increased revenue to the investors if the spread between North American and Asian prices increases during the term.

It also provides for compensation to the investors if future governments impose “discriminatory” increases to carbon tax or greenhouse gas regulations on LNG plants during the next 25 years. NDP leader John Horgan said he is concerned that the B.C. Liberal government over-promised the benefits of LNG development and may now be offering “too much lolly” to land the first big deal.

Pacific Northwest is a consortium led by Malaysia’s state-owned energy company PETRONAS, its Canadian subsidiary Progress Energy, Chinese state firm Sinopec, Indian Oil Corp., Japan Petroleum Exploration Corp. and Petroleum Brunei.

The B.C. government approved a separate 3.5 per cent LNG income tax last fall, and passed legislation to control the amount of property tax the local government can impose on the project.

Limits were also placed on conventional pollution and greenhouse gas emissions from the project, with carbon offsets required if the operation exceeds 0.16 tonnes of carbon dioxide equivalent per tonne of LNG produced.

 

Surrey North Delta Leader

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Surrey Eagles start playoffs on the road in Chilliwack

South Surrey junior ‘A’ squad back in BCHL playoffs for second time in six years

White Rock’s Coldest Night raises $102K

390 walkers participated in seventh-annual event

Girls, women try their hand at marine rescue in Surrey

Achieve Anything Foundation, RCMSAR Crescent Beach host ‘Operation: This IS You! Saving Lives at Sea’

White Rock cadets nab medals at Vernon competition

Thirteen members of 907 Squadron compete at regional meet

VIDEO: 2020 BC Winter Games wrap up in Fort St. John as torch passes to Maple Ridge

More than 1,000 athletes competed in the 2020 BC Winter Games

Snowfall warning in effect for the Coquihalla Highway

An unstable airmass is producing heavy flurries over parts of the southern highway passes

B.C.’s seventh coronavirus patient at home in Fraser Health region

Canada in ‘containment’ as COVID-19 spreads in other countries

Fraser Health warns some schools of possible COVID-19 exposure

A sixth COVID-19 patient is a woman in her 30s in the Fraser Health region who recently returned from Iran

Harvey Weinstein found guilty of sex crimes in landmark #MeToo trial

The cases against the Hollywood mogul started the #MeToo movement

Initial police report of 2015 accident was ‘inaccurate’ Langley RCMP say

Online statement issued to clarify that victim was not in the middle of the road

CRA puts focus on paper returns as tax-filing season opens

The federal tax collector expects to handle about two million paper returns this calendar year out of roughly 26 million filings

Teck withdraws application for Frontier mine, citing discourse over climate change

The Vancouver-based company said it will take a $1.13-billion writedown on the Frontier project in Alberta

B.C. VIEWS: Pipeline dispute highlights need for clarity

As the B.C. treaty process grinds on, uncertainty remains

Most Read