Legislature convenes July 13 for LNG deal

PETRONAS and its Asian partners have endorsed deal to protect them from "discriminarory" tax hikes for 25 years

Finance Minister Mike de Jong

VICTORIA – The B.C. legislature is being recalled July 13 to examine and approve a 25-year tax and royalty agreement for B.C.’s first major liquefied natural gas investment.

Finance Minister Mike de Jong said Tuesday a project development agreement for Pacific Northwest LNG’s pipeline and export terminal near Prince Rupert has been approved by the energy companies proposing the investment of up to $36 billion. The project still needs federal environmental approval and an agreement with Coast Tsimshian and other First Nations in whose traditional territories the pipeline and shipping facilities would be built.

Members of the Lax Kw’alaams Band voted down an offer from Pacific Northwest LNG in May, citing concern about the terminal’s impact on salmon habitat in the Skeena River estuary, despite a design change to build a bridge for the pipeline above the area known as Flora Bank.

The province revealed the general outlines of the project agreement in May. It provides minimum gas royalty revenues for B.C., with increased revenue to the investors if the spread between North American and Asian prices increases during the term.

It also provides for compensation to the investors if future governments impose “discriminatory” increases to carbon tax or greenhouse gas regulations on LNG plants during the next 25 years. NDP leader John Horgan said he is concerned that the B.C. Liberal government over-promised the benefits of LNG development and may now be offering “too much lolly” to land the first big deal.

Pacific Northwest is a consortium led by Malaysia’s state-owned energy company PETRONAS, its Canadian subsidiary Progress Energy, Chinese state firm Sinopec, Indian Oil Corp., Japan Petroleum Exploration Corp. and Petroleum Brunei.

The B.C. government approved a separate 3.5 per cent LNG income tax last fall, and passed legislation to control the amount of property tax the local government can impose on the project.

Limits were also placed on conventional pollution and greenhouse gas emissions from the project, with carbon offsets required if the operation exceeds 0.16 tonnes of carbon dioxide equivalent per tonne of LNG produced.

 

Just Posted

Pitt Meadows woman arrested after violent car robbery in Richmond

The woman along with a 28-year-old man from Delta arrested in Vancouver

Four officers at Maple Ridge’s regional prison charged with assault

Case in Port Coquitlam court adjourned until February.

Medical causes behind death in Memorial Peace Park

Happened early Saturday in downtown

People asked to report any cougar sightings in east Maple Ridge

WildsafeBC asks people to keep attractants in

Pitt Meadows council allows electronic attendance

Members of the public opposed, veteran councillors say change is not new

UPDATE: B.C. legislature managers accused of excessive travel, personal expense claims

Speaker Darryl Plecas’ report details ‘flagrant overspending’

B.C. man fined $10,000 after leaving moose to suffer before death

Surrey man was convicted last week on three Wildlife Act charges

‘Blue Monday’ isn’t real, but depression can be

CMHA encourages people to prioritize their mental health

South Surrey mother didn’t have the intent to kill her daughter: defence

Closing submissions in case of Lisa Batstone underway

Anti-pipeline group wants NEB to consider impact of emissions, climate change

Stand.earth filed NEB motion asking to apply same standard to the project as it did with Energy East pipeline

Parole granted for drunk driver who killed B.C. RCMP officer

Kenneth Jacob Fenton will be able to attend alcohol abuse treatment, nearly three years after crash that killed Const. Sarah Beckett

B.C. man charged in 2014 snake venom death of toddler

Henry Thomas was taking care of the North Vancouver girl the day before she died

B.C.’s largest public-sector union wants inquiry into money laundering, drugs

Union officials say Premier John Horgan and Attorney General David Eby have not ruled out the possibility of a public inquiry

Teen in confrontation with Native American: I didn’t provoke

Nick Sandmann of Covington Catholic High School said he was trying to defuse the situation

Most Read