AltaGas Canadian LNG Export Plans Held Up by Import Tax Dispute

  • Company fighting federal duty on China-made floating facility
  • Federal decision on company appeal expected in November

AltaGas Ltd. is putting an investment decision for a C$600 million ($464 million) liquefied natural gas export project in Canada on hold as it fights a government tax on imported equipment.

The Calgary-based company is disputing a 25 percent customs duty on a C$300-million floating LNG facility that the developer wants to import from China, John Lowe, executive vice president of corporate development at AltaGas, said Wednesday at a conference in Vancouver. The company is optimistic that a federal decision on its appeal, expected in November, will mean the project won’t have to pay any tax, Lowe said.

AltaGas and the other owners of the Douglas Channel LNG project plan to decide whether to proceed this year. Other backers of the project include Idemitsu Kosan Co., Exmar NV and Electricite de France SA, known as EDF. It’s among 20 LNG export proposals along Canada’s Pacific Coast.

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