Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

British Columbia Introduces Tax on LNG Projects to Pay Down Debt

Feb. 12 (Bloomberg) -- British Columbia, assuming five liquefied natural gas terminals will be built in the province by 2020, introduced a tax on the industry that is less than Australia’s levy, the government said today.

Canada’s westernmost province forecast it will raise as much as C$260 billion ($259 billion) over the next three decades to cut debt and funnel revenues into a so-called Prosperity Fund, according to statements from the government after Premier Christy Clark outlined her LNG plan in a speech.

A study by the government found the new tax will keep the province “competitive” globally. “This review has concluded that B.C.’s main competitor is Australia, which has an LNG tax and royalty regime that is up to one-third higher than B.C.’s,” according to a statement from the Ministry of Finance.

British Columbia is home to the Montney Shale, with an estimated 49 trillion cubic feet of gas reserves. Royal Dutch Shell Plc, Chevron Corp. and Petroliam Nasional Bhd have developed potential projects to liquefy the gas and ship it by tanker to Asian markets, where the fuel sells for about five times North American prices.

To contact the reporter on this story: Rebecca Penty in Calgary at rpenty@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.