Close X
Tuesday, November 12, 2024
ADVT 
National

Petronas says 'consensus' on LNG terms in next few weeks is 'critical'

Darpan News Desk The Canadian Press, 06 Oct, 2014 10:56 AM
    VICTORIA - A major player in British Columbia's liquefied natural gas sweepstakes has rained on Premier Christy Clark's throne speech, which laid out the government's plans for the industry in the coming months.
     
    Malaysian energy giant Petronas, which is planning a multibillion-dollar LNG export facility near Prince Rupert, B.C., chose the opening of the legislature Monday to issue a statement, saying it may delay development for a decade unless it can reach cost and environmental agreements with provincial and federal governments by month's end.
     
    Clark also rejected suggestions the government was downplaying its expectations for LNG because the throne speech did not mention past statements of creating 100,000 new jobs and eliminating the provincial debt, currently at more than $60 billion.
     
    "This is a chance — not a windfall," said the speech. "It will not be simply given to us, but achieved after a lot of hard work."
     
    Clark said at a news conference following the speech, which was 11 pages long and took less than 18 minutes to read, that she is focused on the job at hand, not repeating past promises about LNG and its benefits. 
     
    "I certainly hope they (Petronas) will be one of them," she said. "It's a very big project. Our goal out of 15 is to make sure we landed five. We're government in a hurry and we want to make sure this happens."
     
    The statement issued by Petronas president Shamsul Abbas said "tax and high cost environment will negatively impact the project's economic viability and competitiveness. In fact, in our last portfolio review exercise, the current project economics appeared marginal."
     
    Clark said talks between Petronas and the government are at the crunch point and she viewed the company's statement as a negotiating tactic. She said she hoped the government and Petronas could reach a deal on the proposed Lelu Island LNG plant, but the development is one of more than a dozen currently in the planning stages.
     
    "We are getting down to the short strokes of it," she said. "The really hard part of it is coming right now, for both sides. What Petronas is doing is representing its shareholders. That is their job. My job is to represent the people of B.C."
     
    Opposition New Democrat Leader John Horgan said he is concerned the Liberals are about to backtrack on their predictions of LNG riches. He said he also has concerns that British Columbians are being kept in the dark about the government's negotiations about a tax structure that could impact their futures.
     
    "The important thing here is what's the return to the people of B.C.," he said. "What concerns me is Petronas knows more about this framework than the people of B.C."
     
    The throne speech, read by Lt.-Gov. Judith Guichon, said the LNG industry is an opportunity that represents a turning point for B.C., but success requires hard work.
     
    "If we choose to do nothing, to maintain the status quo, we will have chosen decline," said Guichon.
     
    Guichon said the government will use this fall's legislative session to move ahead with its framework to ensure the LNG industry benefits the owners of the resource — the people of British Columbia.
     
    Clark said the government will table legislation in the coming weeks that includes a tax and environmental structure for LNG.
     
    "The centrepiece of it is bringing in the full tax structure that will be required to bring in an LNG industry," she said. "I felt today was really important to get down to the business of what we're going to do in this session. Get on with it."
     
    Last February, Finance Minister Mike de Jong introduced a proposed two-tiered LNG Income Tax that called for an initial tax of 1.5  per cent at the start up phase and a tax of up to seven per cent once production was underway.
     
    Clark and de Jong have since said the seven per cent number was open to discussion.

    MORE National ARTICLES

    B.C. Education Minister Urges Teachers' Union To Pause Strike For Mediation

    B.C. Education Minister Urges Teachers' Union To Pause Strike For Mediation
    VICTORIA - The question of whether British Columbia's half-million schoolchildren start classes as scheduled next week appears to hinge the teachers' union accepting a government proposal to temporarily end an ongoing strike and delay dealing with one of the union's largest grievances.

    B.C. Education Minister Urges Teachers' Union To Pause Strike For Mediation

    Unruly Passengers In Custody After Sunwing Flight Returns To Toronto

    Unruly Passengers In Custody After Sunwing Flight Returns To Toronto
    The airline said the flight had left Toronto at 4:30 p.m. en route to Cuba when it was disrupted by "two unruly female passengers."

    Unruly Passengers In Custody After Sunwing Flight Returns To Toronto

    Canada Post Earns Profit, Gets Boost From Parcels And Lower Pension Costs

    Canada Post Earns Profit, Gets Boost From Parcels And Lower Pension Costs
    OTTAWA - The Canada Post Group of Companies reported Wednesday a net profit of $67 million in the second quarter, boosted by growth in its parcel delivery business and lower pension costs

    Canada Post Earns Profit, Gets Boost From Parcels And Lower Pension Costs

    Missing For 8 Days: RCMP Find 1 Canoeist Dead, 1 Survivor In North Saskatchewan

    Missing For 8 Days: RCMP Find 1 Canoeist Dead, 1 Survivor In North Saskatchewan
    PINEHOUSE LAKE, Sask. - RCMP in northern Saskatchewan have rescued a woman who spent eight days in the wilderness after a canoeing accident that killed her husband.

    Missing For 8 Days: RCMP Find 1 Canoeist Dead, 1 Survivor In North Saskatchewan

    Amid Reports Of Adding Teams, NHL Remains Status Quo On Expansion

    Amid Reports Of Adding Teams, NHL Remains Status Quo On Expansion
    TORONTO - NHL expansion is likely coming in the near future, though the league hasn't committed to any official plan just yet.

    Amid Reports Of Adding Teams, NHL Remains Status Quo On Expansion

    Museum Of Vancouver Exhibit To Highlight 1940s, '50s Fashion Trends

    Museum Of Vancouver Exhibit To Highlight 1940s, '50s Fashion Trends
    VANCOUVER - The Museum of Vancouver is planning to spotlight fashion trends of the 1940s and '50s in an exhibition opening next month.

    Museum Of Vancouver Exhibit To Highlight 1940s, '50s Fashion Trends