LNG processing and tanker loading facility proposed by consortium led by PETRONAS at Lelu Island

Federal tax credits target LNG investment (with VIDEO)

Prime Minister Stephen Harper sweetens the pot for LNG investors with investment credits similar to B.C. system

The federal government is offering tax breaks for equipment and buildings for liquefied natural gas production.

Prime Minister Stephen Harper announced the tax breaks in Surrey Thursday with Industry Minister James Moore and three B.C. MPs.

LNG producers will be granted capital cost allowances of 30 per cent on equipment and 10 per cent on buildings, which reduce their income tax to offset construction costs. The standard rate for capital cost allowance is eight per cent for equipment and six per cent for buildings.

B.C. took a similar approach with its LNG income tax, offering credits on corporate income tax until initial plant investments are paid off.

Premier Christy Clark welcomed the federal move, which she said B.C. has lobbied hard to get as international producers have delayed final investment decisions. She said the drop in oil prices has made the decision more difficult for big companies that get part of their revenue from oil, but B.C. is competitive on LNG.

“We’re already more competitive than Australia,” Clark said. “Our real main competition in the world is the U.S. and the west coast of North America.”

NDP natural gas critic Bruce Ralston said the front-end tax credits are the right approach to take, but the federal tax break doesn’t change the economic conditions for B.C. trying to enter a global energy market.

“Our objections are the same,” Ralston said. “If LNG proponents want, as one proponent did, 70 per cent temporary foreign workers, and 70 per cent of the [greenhouse gas] emissions are not being counted, then we don’t support the plan.”

David Keane, president of the BC LNG Alliance, said the federal decision is encouraging and the industry continues to work with First Nations and other local governments to develop.

Just Posted

Province announces $100-million grant funding for Northwest communities

The Northern Capital and Planning Grant will go to four regional districts and 22 municipalities

Prince Rupert Gas Transmission project searches for partners

TransCanada is renewing permits for its natural gas pipeline project to North Coast.

Coastal GasLink stops work to investigate archaeological find

OGC archaeologists are en route to the Houston-area site where Unist’ot’en report finding stone tools

All Native Basketball Tournament Day 5: Recap

Highlights and results from day 5 at the All Native Tournament

All Native Basketball Tournament Day 6: Preview

Look ahead to all the action scheduled for Feb. 16 at the All Native Tournament

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

B.C. VIEWS: Power politics wins over rational energy policy

B.C Hydro continues to face interference on rates

PR firm suspends contract with former B.C. premier amid groping accusation

Edelman says in a statement that Campbell has served as a special adviser to the firm since last July

James says B.C. budget puts priorities on NDP’s poverty, environment plans

She said she expected the government’s poverty reduction and climate change strategies to be priorities in the budget

PHOTOS: Day 1 of the 2019 Canada Winter Games in Red Deer

Games kicked off in Red Deer this week

Ammonia leak shuts down curling club in Nelson

It’s not yet clear when the leak was detected

Pavelski’s 31st goal helps Sharks top Canucks 3-2

Vancouver one point out of second NHL wild-card spot

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Most Read