Petronas-led consortium to review B.C.’s proposed LNG tax
Pacific Northwest LNG partnership to review 3.5 per cent LNG tax announced by provincial government
CALGARY—A consortium led by Malaysian energy giant Petronas says it’s reviewing British Columbia’s newly announced tax on its liquefied natural gas (LNG) industry.
Spokesperson Spencer Sproule says the Pacific Northwest LNG partnership has believed all along that British Columbians deserve to benefit from resource extraction.
But at the same time, he says all levels of government must recognize the need for Canada to stay competitive with other LNG exporting countries around the world.
This week, the B.C. government announced a preliminary LNG tax rate of 3.5 per cent—half of what it had proposed earlier.
The CEO of Petronas had said previously that the earlier proposed tax scheme, along with a sluggish regulatory process, put the economics of the multi-billion-dollar LNG export facility near Prince Rupert, B.C., into question.
Analyst Jon Morrison from CIBC World Markets Inc. says he expects the Pacific Northwest LNG consortium to decide to go ahead with the project before year end, despite reports in recent months that it could be delayed or cancelled.