BC politicians expected to ratify project agreement for proposed LNG plant
Posted July 19, 2015 7:58 am.
Last Updated July 19, 2015 8:06 am.
This article is more than 5 years old.
VICTORIA (NEWS 1130) – The BC government’s dream of building a liquefied natural gas industry is expected to move towards reality this week with the adoption of a law on a 25-year agreement that could become the province’s first LNG deal.
But despite the government’s extraordinary efforts to court a new industry, including a summer recall of politicians to the legislature, companies are pressing for lower taxes and a firmer grasp on the thousands of workers expected for the job.
BC LNG Alliance spokesman David Keane says companies want a break on the provincial sales tax, but BC Finance Minister Mike de Jong says no dice. De Jong says the project development agreement that’s before the legislature protects an LNG project from targeted tax increases on the industry, but not from increases in corporate or provincial sales taxes.
Pacific NorthWest LNG, a joint venture backed by Malaysian state-owned energy giant Petronas, plans to build a 36 billion dollar (US) LNG plant at Lelu Island near Prince Rupert, which would be the largest private investment in BC’s history.
Keane and the government both say Canadian workers will be first in line for jobs, but temporary foreign workers will also be hired for the projects.
