BC Tax Relief Plan Would Bolster LNG Export Industry,to a Point

摘要

Last month,Canada's gas producers lamented that government policy is hampering efforts to export their stranded gas to foreign markets(NGW Mar.25' 19).Last week,one key producing province took a step to rectify that.British Columbia's NDP government introduced legislation that will offer tax breaks for the LNG industry,which until recently had struggled to get any export projects beyond the planning stage.The bill would repeal two LNG laws introduced by the previous government and reduce BC's corporate income tax rate from 12% to 9% for firms that meet several conditions,including climate commitments.BC Finance Minister Carole James brought the bill to parliament Mar.25,saying it is the final piece of the fiscal framework set up last year to prop up LNG Canada's proposed C$40 billion(US$30 billion)megaproject in northern BC.But she said it is also aimed at “reducing barriers” for other LNG ventures on Canada's west coast(NGW Dec.24'18).Industry officials and analysts contend that the proposal should continue to lift BC's gas export prospects that were jump-started by LNG Canada's decision to move forward in October-but only to a point.