BC targets LNG tax ruling
The British Columbia government has set Nov. 30 as its deadline to finalize all provincial LNG costs, including taxes, along with the costs of meeting environmental standards and the terms of First Nations compensation.
Premier Christy Clark made the pledge May 5 in Kuala Lumpur with Chief Executive Officer Shamsul Azhar Abbas of Malaysia’s Petronas, operator of the Pacific NorthWest LNG project.
In return, Petronas said it would continue working toward a final investment decision, targeting a development agreement by Nov. 30 which could see Petronas lead the field of 15 British Columbia LNG proposals out of the starting gates.
State-owned Petronas is one of several proponents that have raised concerns about the entire costs contained in the government’s tentative fiscal regime. It asked for clarity by mid-2014.
Natural Gas Development Minister Rich Coleman has said the government needs more time to consult with proponents before rolling out the relevant legislation.
Both the government and Petronas agreed to assign officials by June 30 to spend the next five months crafting the development pact.
“Securing this commitment from Petronas shows our strategy for attracting investment to B.C. is working,” Clark said in a statement. “Our goal is to be the most competitive jurisdiction in the world for LNG.”
The two parties said that signing the letter of intent is proof of their determination to secure “mutual interests” to make Pacific NorthWest a reality.
—Gary Park
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