Pacific NorthWest LNG Project is forecast to create 4,500 jobs and up to $8.6 billion in tax and royalties
The government of British Columbia approved the Liquefied Natural Gas Project Agreements Act yesterday after a special summer session. The bill gives the province authority to enter into LNG project agreements, reports CBC.
With the bill passed, B.C. can now move ahead with a $36 billion deal with Pacific NorthWest LNG to encourage a positive final investment decision (FID) from the company.
Bill protects PNW LNG from new industry-related taxes for 25 years
Under the deal, B.C. will compensate PNW LNG if taxes on the industry are raised, natural gas tax credits are reduced or new carbon taxes targeting the LNG sector are imposed for the next 25 years. The agreement will not protect the company from increases in provincial sales and corporate taxes.
B.C. Premier Christy Clark said the new bill sets the stage for “unprecedented levels of investment, job creation and economic activity,” after it was signed yesterday. The NorthWest LNG Project is forecast to create 4,500 jobs and up to $8.6 billion by 2030 in tax and royalties.
“Liquefied natural gas represents an extraordinary opportunity,” said Clark. The new bill will create jobs and build a “clean, competitive new industry.”
The $36 billion tax deal will offer stability to the LNG industry in B.C. said Finance Minister Mike de Jong. “[We’re saying,] ‘here are the rules of the game that will govern this industrial activity within this jurisdiction for the term of the agreement’ and they can bank on that and know those are not likely to change.”
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