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

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.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Seniors in the Interior Health region can book their COVID-19 vaccinations starting Monday, March 8, 2021 at 7 a.m. (File photo)
Seniors in Interior Heath region can book COVID-19 shots starting Monday

Starting March 8 the vaccination call centre will be open 7 a.m. to 7 p.m. daily

Lorne Doerkson is the Liberal MLA for the Cariboo-Chilcotin. (Black Press Media file photos)
MLA’s CORNER: Premier Horgan needs to work harder

There are lots of people out there who are in desperate need of assistance

The first Chimney Creek Roadhouse, constructed in 1864. (Photo courtesy of the B.C. Provincial Archives)
HAPHAZARD HISTORY: The Isnardy family of Williams Lake

Amadee Isnardy was born in 1840 near Nice, France

Jim Hilton pens a column on forestry each week for the Quesnel Observer.
FOREST INK: Ecological economics not a popular topic for most people

The following is a review of the no (or slow) growth concept

Do you have a letter? Email us at editor@wltribune.com
LETTER: BC Liberals left ICBC a mess: Farnworth

Our BC NDP government has worked tirelessly to fix the mess that was left behind

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

Personal protective equipment is seen in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver. THE CANADIAN PRESS/Jonathan Hayward
$16.9 million invested to improve worker safety, strengthen B.C.’s food supply chain

Money to be used for social distancing, personal protective equipment, cleaning, and air circulation

Most Read