British Columbia pledges lowest taxes for LNG industry

Mon Feb 25, 2013 5:33pm EST

Related Topics

* B.C. to offer low tax, royalty regime for LNG

* Province counting on projects for employment, revenue

CALGARY, Alberta Feb 25 (Reuters) - British Columbia intends to offer the world's lowest tax regime for liquefied natural gas projects as it seeks to kickstart industry investments on its northern Pacific coast, the premier of the Canadian province said on Monday.

Speaking to an LNG industry conference sponsored by Clark's Liberal government, the premier touted her plan to attract new projects to export gas from the province's prolific shale fields to Asia by keeping taxes and other costs low.

"It is a plan that ... ensures that we are more competitive than other jurisdictions out there, including Australia, when it comes to our tax and royalty regime," Clark said in her speech. "We intend to be the most competitive jurisdiction on the globe."

Five LNG plants clustered around the ports of Prince Rupert and Kitimat have been proposed and three have already received export licenses including Apache Corp and Chevron Corp's Kitimat LNG project, the privately owned facility planned by BC LNG Export Cooperative and the Royal Dutch Shell Plc plant, which received its permit on Monday.

Clark, whose Liberals are running behind the opposition New Democratic Party in polls ahead of an election scheduled for May, is counting on the LNG industry to boost employment and provincial revenues.

"We intend to deliver the best environment for liquefied natural gas investment anywhere on the globe," she said.

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