A LNG framework and a provincial climate change strategy are the cards, says BC premier John Horgan.
“It's an exciting opportunity. A final investment proposal decision will be made.”
Sixteen First Nations groups are in support.
“Market conditions have changed since first LNG discussions began. A fiscal and climate framework. Industrial activity and Indigenous reconciliation. We want to marry reconciliation and industry," says Horgan adding objectives of the new government had to be met first.
“Jobs for British Columbians, a fair return, that First Nations would be full partners and integral to development of the project, and meet our climate change objectives. LNG Canada is working diligently to meet these."
“This is a different approach. This new approach is one BC wants to see from government.”
And developed a framework that can be used moving forward.
“We are the path and will be very positive to northern British Columbia. At the end of the day could be a $40 billion project.”
At the centre of the discussions with LNG Canada is a revised fiscal framework that is designed to put natural gas development on a level playing field with other industrial sectors, accessing the same fiscal policies and working within the same overall B.C. framework to achieve greenhouse gas (GHG) reductions.
The new framework, to which LNG Canada will be subject, provides: relief from provincial sales tax (PST), in line with the policy for manufacturing sectors, subject to repayment in the form of an equivalent operational payment, new GHG emission standards under the Clean Growth Incentive Program, announced in Budget 2018, general industrial electricity rates consistent with other industrial users in BC, and elimination of the LNG income tax that had required LNG-specific tax rates.
“The LNG Canada proposal has the potential to earn tens of billions of dollars and create thousands of jobs for British Columbians over the life of the project,” says Horgan.
“It’s a private-sector investment that could benefit our province for decades to come, but not at any price – we need to make sure the values British Columbians believe in come first.”
The Premier adds government will also expect the LNG Canada project to fit within the goals of the Province’s climate-change plan and, specifically, its legislated GHG reduction targets.
“We committed, during the election campaign, to reduce our greenhouse gas emissions by 40% below 2007 levels by 2030, and by 80% by 2050. That remains our goal."
With BC’s new fiscal framework provided to LNG Canada this week, it is anticipated the company will make a final investment decision sometime before the end of this year.